Babcock & Wilcox Investigation

Squitieri & Fearon, LLP is investigating  fiduciary breaches by the Directors of Babcock & Wilcox (“BW”).

BW is a New York Stock Exchange traded company which plunged almost 80% in price during 2017.

During 2017, BW Directors approved the repurchase of approximately 4.4 million shares of BW stock from a large activist shareholder at a price of approximately $10.50 per share one day before the BW stock price plunged to $2.70 upon the announcement on August 9, 2017 of the results of another disastrous quarter (ended June 30, 2017). The purported justification for the stock repurchase that cost BW approximately $50 million was the extension to BW by the parent of the activist investor of an approximately $130 million loan at an interest rate of 10% payable on or before 2020.  However BW’s repurchase of shares from the activist investor came only three months after the activist shareholder had filed a form with the SEC indicating that the activist may seek, among other things, a change in the directors and/or  management of BW.

We are investigating claims that BW directors breached their fiduciary duties to BW by allowing company funds and debt to be used to repurchase stock at artificially high prices when both the activist shareholder and BW directors knew that the BW stock was poised to plummet upon announcement of the weak second quarter results.

If you or someone you know has been an investor in BW stock and still currently owns BW stock, and would like to learn more about our investigation, please fill out our online form, or contact lee@sfclasslaw.com or by phone at (212) 421-6492.

 


Babcock & Wilcox Investigation

    Any information that you submit will be maintained as confidential. If Squitieri & Fearon, LLP, in its sole discretion, believes that you might be an appropriate lead plaintiff candidate, Squitieri & Fearon, LLP will contact you to discuss the matter and whether to establish an attorney client relationship.