Ollila v Babcock & Wilcox Enterprises Inc.
Status: Ongoing Case
Labaton Sucharow serves as counsel in this securities class action against Babcock & Wilcox Enterprises, Inc. (Babcock), a technology-based provider of fossil and renewable power generation equipment that includes a suite of boiler products, environmental systems, and the provision of related services.
The operative complaint was filed on September 28, 2017, alleging that between June 17, 2015 and August 9, 2017 (the class period), the defendants misrepresented the strength and growth prospects of Babcock’s renewable energy segment, including critical information about projects that were crippled by a multitude of operational failures. As the truth regarding the renewable segment began to emerge, Babcock was forced to take massive write downs and to disclose material weaknesses in its internal controls.
Babcock’s share price fell 86 percent from $19.28 at the beginning of the class period to $2.70 on August 10, 2017, the day after the defendants’ final corrective disclosure.
On February 8, 2018, the court denied the defendants’ motion to dismiss and sustained the complaint in its entirety. In reaching its decision, the court found “that plaintiff has properly pled scienter and actionable misstatements and omissions; as such, plaintiffs’ allegations go beyond mere internal mismanagement.”
The case is Ollila v. Babcock & Wilcox Enterprises, Inc., No. 17-cv-0109. Arkansas Teacher Retirement System was appointed lead plaintiff on April 25, 2017. Labaton Sucharow represents additional named plaintiffs St. Paul Electrical Construction Pension Plan, St. Paul Electrical Construction Workers Supplemental Pension Plan, and St. Paul Electrical Workers Retirement Medical Funding Plan, as well as the putative class. The defendants are Babcock, Babcock’s Chief Executive Officer, President and Director, E. James Ferland, and Senior Vice President and Chief Financial Officer Jenny L. Apker.