Gainey McKenna & Egleston: Securities Fraud Class Action Lawsuit Filed (USA)
Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Northern District of Illinois on behalf of all persons or entities who purchased the common stock of Great Lakes Dredge & Dock Corporation between August 7, 2012 and March 14, 2013, seeking remedies under the federal securities laws.
The Complaint alleges Defendants concealed from the investing public that the Company had recognized revenue in a manner not consistent with its accounting policy in that certain pending change orders where client acceptance was not finalized were included as revenue. In addition, the Complaint alleges that the Company failed to disclose material weakness in its internal controls to detect or prevent misstatements in its financial statements. As a result of Defendants’ allegedly false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.
On March 14, 2013, the Company issued a press release announcing the restatement of its financials in which its previously-issued financial statements from the Second and Third Quarter of fiscal 2012 should no longer be relied upon. In addition, the Company admitted that it expected to conclude that it had a “material weakness in its internal control over financial reporting,” and that it would not be able to timely file its 2012 annual financial results with the United States Securities and Exchange Commission (“SEC”).
Press Release, April 1, 2013