Glancy Binkow & Goldberg LLP announces that purchasers of the securities of Great Lakes Dredge & Dock Corporation between August 7, 2012 and March 14, 2013, inclusive, have until May 20, 2013 to file a motion with the Court to be appointed as lead plaintiff.
The shareholder lawsuit was filed in the United States District Court for the Northern District of Illinois.
Great Lakes engages in marine construction, dredging, and commercial and industrial demolition primarily in the east, west and Gulf Coasts of the United States. The Complaint alleges that throughout the Class Period defendants misrepresented and/or failed to disclose: (1) that the Company was accounting pending change orders as revenue where client acceptance had yet to be finalized; (2) that, as such, the Company was improperly recognizing revenue for its demolition segment; (3) that the Company’s revenue was overstated; (4) that the Company’s financial results were not prepared in accordance with Generally Accepted Accounting Principles (“GAAP”); (5) that the Company lacked adequate internal and financial controls; and (6) as a result of the foregoing, that the Company’s financial statements were materially false and misleading at all relevant times.
On March 14, 2013, after the close of trading, the Company disclosed that it would restate its financial results for the Company’s 2012 fiscal second and third quarters. According to the Company, Great Lakes had been improperly recording revenue recognition by accounting pending change orders as revenue where client acceptance had yet to be finalized. As a result of the announced restatement, the Company’s second quarter 2012 revenues were reduced by $3.9 million and third quarter 2012 revenues were reduced by $4.3 million. The Company also announced that the restatement would delay the filing of its 2012 Annual Report.
As a result of this news, shares of the Company declined $1.615 per share, or 8%, to close on March 15, 2013 at $7.355 per share on unusually heavy trading volume.
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Press Release, April 8, 2013