This is a securities fraud class action lawsuit against Michael Baker Corporation and certain of its officers and directors violated federal securities laws.
The securities class action complaint alleges that Michael Baker Corporation made false and misleading statements inflating reported revenue from Michael Baker's energy business segment. After the close of the market on February 22, 2008, Michael Baker announced that it would be filing a restatement of its first, second and third quarter 2007 financial statements to correct errors in Michael Baker's revenue recognition practices in the energy business segment.
Michael Baker's February 22, 2008 disclosure revealed that the amount of the restatement might exceed the total earnings reported for the energy business segment for the first nine months of the 2007 fiscal year -- the business segment that accounted for almost 70 percent of Michael Baker's total earnings for that period. Furthermore, the February 22, 2008 announcement disclosed that Michael Baker was still evaluating whether it would need to restate earnings for fiscal year 2006 financial statements.
Following the issuance of Michael Baker's February 22, 2008 press release, the price of Michael Baker's common stock dropped from a closing price of $36.10 on February 22, 2008 to a closing price of $27.57 at the end of the next trading day.
Name (Stock Symbol)
Michael Baker Corporation (BKR)
Michael Baker Corporation, through its subsidiaries, provides engineering and energy services.
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