Stull, Stull & Brody has announced the filing of a new complain over the 401(K) plans of Chicago Bridge & Iron Company N.V. (NYSE:CBI) just as it celebrates a big Texas contract win.
Stull, Stull & Brody revealed that a complaint was filed against the trustees of the company’s 401(K) plan allegedly violated the Employee Retirement Income Security Act of 1974 (“ERISA”). The complaint claims that the fiduciaries committed this violation by providing the company’s stock as an investment option as part of the 401(k) plan) while failing to reveal CB&I’s true operating and financial conditions to the beneficiaries and participants.
Those who had acquired CB&I stock in an individual account through a firm’s 401(K) plan had been advised to seek clarification of their legal rights regarding the matter. The complaint was filed in the U.S. District Court located in the Southern District of New York. It aims to seek whether the company failed to protect its 401(K) plan from the inflation of its common stock since October 29, 2013, which led to massive liability worth millions. These losses occurred due to inaccurate accounting of the company’s goodwill in 2013, to cover the losses that came about due to the overruns and delays on the Nuclear projects.
Despite the 401(K) case, CB&I was pleased to announce that it won the storage terminal expansion contract in Texas. The contract was awarded to the company by Phillips 66 which requires more storage capacity for its liquid products terminal which is located in Nederland, Texas. CBI&I is required to carry out fabrication, procurement, engineering and erection of three massive crude oil tanks that will be fitted with floating pontoon roofs.
“This is our third project for Phillips 66 at this terminal, where we are currently building five similar crude storage tank. As the industry’s most experienced tank builder, we can deliver the safety, quality and schedule performance our customers expect and rely on,” stated Luke V. Scorsone, the executive VP of the Fabrication Services operating group at CB&I.
CB&I stock closed the latest trading session on Tuesday at $16.67 after tanking by 3.7 percent compared to the value of the stock during the previous close.