Investor Alert: Kaplan Fox Announces Investigation Of Fluor Corporation

NEW YORK, June 6, 2018

A class action complaint has been filed in the United States District Court for the Northern District of Texas against Fluor and certain executive officers of the Company on behalf of investors that acquired Fluor common stock between August 14, 2013 and May 3, 2018, inclusive (the "Class") alleging violations of the Securities Exchange Act of 1934. 

The complaint alleges that the truth began to emerge on August 3, 2017 when, after the market closed, Fluor issued a press release announcing the Company's financial results for the second fiscal quarter and six months ended June 30, 2017.  For the quarter the Company reported a net loss of $24 million.  The results for the quarter included "an after-tax charge of $124 million, or $0.89 per diluted share, for estimated cost increases on three gas-fired projects."  During the conference call that ensued the Company stated "[a]ll three projects…had a fundamental problem."

Following this news, the price per share of Fluor's common stock declined $3.80 per share, about 8.7%, to close at $40.06 per share on August 4, 2018.

Then, on May 3, 2018, after the market closed, Fluor reported a net loss of $18 million for the first quarter ended March 31, 2018, compared to net earnings of $61 million in the comparable prior year's quarter.  Fluor stated that "[r]esults for the quarter include an after-tax charge of approximately $96 million, or $0.69 per diluted share, for forecast revisions on a gas-fired power project."

Following this news, the price per share of Fluor's common stock declined $13.23 per share, about 22.4%, to close at $45.76 per share on May 4, 2018.

The complaint alleges, among other things, that throughout the Class Period the defendants made materially false and/or misleading statements and/or failed to disclose that (1) Fluor's bidding process for projects related to the construction of gas-fired power generation facilities was flawed, (2) Fluor had improperly estimated the gas-fire projects, (3) as a result, Fluor would face productivity, equipment and other issues, (4) Fluor would incur multiple charges impacting quarterly results, and (5) Fluor would ultimately decide to discontinue the pursuit of the gas-fired power market.