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Oklahoma City, OK (April 13, 2019) – On April 11, 2019, a securities class action lawsuit was filed in the United States District Court for the Southern District of Texas against Orion Group Holdings, Inc. (NYSE: ORN). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is March 13, 2018 through March 26, 2019. More specifically, the complaint f alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company had overstated goodwill in certain periods; (2) that the Company had overstated accounts receivable in certain periods; (3) that the Company lacked effective internal control over financial reporting, including over goodwill impairment testing and allowance for doubtful accounts; (4) that, as a result, the required adjustments would materially impact the Company’s financial results; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On October 18, 2018, Orion announced that it expected a significant revenue shortfall for the third quarter of 2018 due to production delays and that its Chief Financial Officer had resigned. On this news, Orion’s stock price fell $0.68 per share, or over 10%, to close at $6.11 per share on October 18, 2018, on unusually heavy trading volume.
On March 18, 2019, Orion announced that it would not file its annual report with the SEC on time due to “extended evaluations of goodwill impairment testing and income tax adjustments, among other things.” The Company also announced that it “expects that a significant change in results of operations from the corresponding period for the last fiscal year will be reflected in its financial statements.” On this news, Orion’s share price fell $0.52, or 12.3%, to close at $3.72 per share on March 19, 2019.
Then, on March 26, 2019, the Company reported $94.4 million net loss for the fourth quarter 2018 due to certain non-cash charges, including a $69.5 million goodwill impairment charge. On this news, Orion’s share price fell $0.22, or nearly 7%, to close at $2.97 per share on March 26, 2019.
Plaintiff seeks to recover damages on behalf of all Orion Group Holdings, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, June 10, 2019 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
If you wish to discuss this action, obtain further information and participate in this or any other securities litigation, or should you have any questions or concerns regarding this notice or preservation of your rights, please contact: Robin Hester at firstname.lastname@example.org