Tuesday, March 5, 2013

Great Lakes Dredge & Dock Corp May Have Violated Federal Securities Laws

Potential federal securities law violations at Great Lakes Dredge & Dock Corp (Symbol: GLDD) have caused upset at the Oak Brook, Illinois company. After close of trading on March 14, 2013, GLDD announced it would restate its 2012 2Q and 3Q revenues. The adjustment resulted in 2012 2Q revenues being reduced by $3.9 million and 2012 3Q revenues being reduced by $4.3 million. In addition, GLDD announced $5.6 million of 4Q revenues failed to meet revenue recognition standards.

This news came along with the announcement of the company’s President and COO, Bruce J. Biemeck, stepping down, effective March 13, 2012. Biemeck was CFO of the company from 1991 to 1999, returning as a director in 2006. He was then promoted to president and CFO in 2010, before taking his final position with the company as COO in August 2012. Along with the restating of revenue and change of leadership, GLDD’s stock plummeted more than 30% following the news. For more information, see this Bloomberg Businessweek article.

Investors have sustained losses as a result of GLDD’s stock devaluation, and it remains to be seen if regulators will investigate. If you purchased GLDD stock and would like to discuss legal options to potentially recoup your investment, please contact Block & Landsman.