Royal Imtech (Netherlands)

Updated: March 09, 2015
Status: Ongoing Case
Labaton Sucharow serves as liaison counsel in this action brought by Deminor, a European shareholder group, against Royal Imtech N.V. (Imtech), a provider of technical services inside and outside Europe.

The action involves a series of disclosures published on February 4, 2013. First, Imtech announced that serious problems with its projects in Poland had led to a "substantial write-off of at least €100 million." Second, Imtech revealed that it would reclassify €200 million that had earlier been reported as cash and cash equivalents. Third, the company also advised that it would not distribute a dividend for the year 2012. Finally, Imtech disclosed that it would be postponing publication of its financial statements for 2012 as well as the annual general meeting, that it had suspended its local Polish management, and that its Board of Management had ordered an investigation into these matters.

These disclosures were particularly jarring to investors because as recently as July 2012, Imtech had offered positive assessments of its expansion into Eastern Europe.

In reaction to these disclosures, on February 4, 2013, Imtech's share price fell almost 50 percent, closing €10.20 per share. On February 5, 2013, Imtech reported the resignations of the CEO and CFO of Imtech Deutschland, who had direct management responsibilities for the Polish activities. Imtech's share price, which had recovered a small part of its losses, dropped again on February 6, 2013 to close at €9.91 per share, below the closing price on February 4, 2013.