The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of Texas on behalf of those who acquired Fluor Corporation (“Fluor” or the “Company”) (NYSE: FLR) securities during the period from November 2, 2017 through February 14, 2020. Investors have until April 28, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that Fluor inflated the Company’s revenue and earnings by improperly recognizing revenue on 16 separate projects (“2Q 2019 Projects”). Once awarded a contract to perform work on a construction project, the Company would routinely submit “change orders” to its clients to request additional funds, which the client was not contractually obligated to pay, to cover “unforeseen circumstances.” Defendants repeatedly made false and misleading statements to investors regarding Fluor’s revenue recognition practices with respect to its submission of these change orders.
On May 2, 2019, Fluor announced that its CEO David T. Seaton had left the Company, effective immediately, and would be replaced by interm CEO and Chief Legal Officer Carlos M. Hernandez. In addition, Fluor significantly reduced its earnings guidance, and disclosed that the Company was taking over $100 million in charges. On this news, Fluor’s share price fell $9.43, or 24.1%, to close at $29.72 per share on May 2, 2019.
On August 1, 2019, Fluor revealed that it would be taking a $714 million pre-tax charge on approximately 16 different projects, including incurring a $233 million charge on a project in which Fluor serves as a subcontractor for British Aerospace Engineering Systems, Inc. in its work on the United States Army Radford Army Ammunition Plant. On this news, Fluor’s share price fell $8.24, or 26.7%, to close at $22.67 per share on August 2, 2019.
On February 18, 2020, Fluor revealed that the SEC was investigating Fluor’s past accounting and financial reporting, and had requested additional information related to the 2Q 2019 Projects. In addition, Fluor announced that the Company had also commenced its own internal investigation into the 2Q 2019 Projects, “focusing initially on the Radford [Project].” As a result of these investigations, Fluor announced that it would not be able to complete and file its Form 10-K on time. On this news, Fluor’s share price fell $4.75, or 24.3%, to close at $14.79 per share on February 18, 2020.
If you acquired Fluor’s securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.