A class action lawsuit has been filed in the United States District Court for the Western District of Pennsylvania, on behalf of all purchasers of securities of Michael Baker Corporation between March 19, 2007 and February 22, 2008, inclusive (the "Class Period"). The Complaint charges MBC and certain of its officers and directors with violations of the Securities Exchange Act of 1934. MBC provides engineering, operations and maintenance services with primary business areas in aviation, environmental, facilities, geospatial information technologies, pipelines and utilities, transportation, water/wastewater, and oil and gas.
The Complaint alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the Company's financial well-being, business relationships, and prospects. Specifically, defendants failed to disclose or indicate the following: (1) that the Company had misstated its financial results for the first three quarters of 2007; (2) that the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (3) that the Company lacked adequate internal and financial controls; and (4) that, as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.
On February 22, 2008, the Company shocked investors when it revealed that it would be restating its financial statements for the first, second and third quarters of 2007. MBC stated that the accounting errors would reduce the Company's consolidated earnings for those periods and that the reported results from those periods should not be relied upon. Upon the release of this news, the Company's shares declined $8.53 per share, or 23.63 percent, to close on February 25, 2008 at $27.57 per share, on unusually heavy trading volume.
If you are a current shareholder or purchased shares during the period of March 19, 2007 and February 22, 2008 and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.