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id: 323, Created by Stan Vick Chase, Scout
14 August 2013Class period Start
14 February 2020Class period End
14 October 2022Claim deadline
Chun v. Fluor Corporation, et al.
Fluor agreed to pay $33 million to settle a securities class action lawsuit accusing the Company of deceiving investors regarding the bidding, construction, accounting treatment, and financial reporting concerning large, fixed-price projects.
Particularly, the complaint alleged that:
- Fluor’s fixed price bids appropriately accounted for any risks, that projects were on track and if any issues existed, they were confined to a single project or business segment, and Fluor’s internal controls over financial reporting were effective and financial results were GAAP-compliant.
- later statements about flawed bidding processes and financial reporting issues related to fixed-price projects contradicted these representations and/or omissions.
- conduct, which was unbeknownst to investors, resulted in financial charges that led to investigations by the SEC and DOJ and that resulted in a restatement of four years of financial statements.
- the Company had actual knowledge of, or recklessly disregarded the falsity of the misrepresentations given, among other things, their involvement in the bidding process, approval of bids, and active involvement in the construction phase of projects.
- the Company was motivated to conceal this information so that could reap tens of millions in executive bonuses that rewarded manufactured, low-ball bids, and net tens of millions in ill-gotten gains from transactions in Fluor stocks, options, and stock-related units.
- The revelation of alleged fraud caused statistically significant stock declines, thereby injuring investors.
Fluor agreed to settle with investors to avoid further litigation.
Kin-Yip Chun, Wayne County Employees' Retirement System
Pomerantz LLP, Robbins Geller Rudman & Dowd LLP
Northern District of Texas
JND Legal Administration
Court hearing date
07 November 2022
+$33,000,000Total Settlement Amount