Shareholder Lawsuit Filed Against Chicago Bridge & Iron Company N.V., Berman DeValerio Pease Tabacco Burt & Pucillo Announces

HOUSTON, March 17 /PRNewswire/ -- An investor sued Chicago Bridge & Iron Company, N.V. ("CBI" or the "Company") today in federal court, accusing the Company of securities law violations, Berman DeValerio Pease Tabacco Burt & Pucillo announced.

Berman DeValerio (http://www.bermanesq.com/) filed the class action in the U.S. District Court for the Southern District of Texas. The complaint seeks damages for violations of federal securities laws on behalf of all investors who purchased CBI common stock from March 9, 2005 through and including February 14, 2006 (the "Class Period").

To receive a copy of the complaint, you may contact the court, call the firm at [phone] or go to http://www.bermanesq.com/pdf/ChicagoBridge-Cplt.pdf.

The lawsuit claims that CBI and a number of individual defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 ("Exchange Act"), 15 U.S.C. Sections 78j(b) and 78t, and SEC Rule 10b-5, 17 C.F.R. Section 240.10b-5, promulgated there under.

CBI designs, builds and maintains processing, treatment and storage facilities worldwide for clients in the energy and water industries.

According to plaintiff's complaint, the Company issued materially false and misleading statements during the Class Period. Specifically, plaintiff alleged that CBI failed to disclose that it had improperly recognized revenue on two projects for which it was unable to collect payment; that CBI lacked adequate internal controls to ensure the accuracy of its reported results and guidance; and, that CBI's financial results were not prepared in accordance with Generally Accepted Accounting Principles and revenue and earnings were therefore materially overstated.

The Company's stock price plummeted when the truth emerged in a series of public disclosures beginning in the fall of 2005, the complaint says. Among them:

* On October 26, 2005, CBI announced a delay in the release of its third quarter financial results. In reaction to the news, the stock dropped approximately 21% from $29.68 to $23.47. * On October 31, 2005, CBI disclosed that the delay "was precipitated by a memo from a senior member of the Company's accounting department alleging accounting improprieties, including the determination of claim recognition on two projects and the assessment of costs to complete two projects." As a result, the stock fell another $1.02 per share to close at $21.25. * On January 27, 2006, in a current report filed with the SEC on a Form 8-K, the Company disclosed that it had entered into a lucrative "Stay Bonus Agreement" with the Company's Vice President and Controller, Tommy Rhodes, valued at over $1.8 million. The complaint alleges that Rhodes was being paid over $1.8 million for releasing claims arising out of his accusations that the Company, among other things, was improperly recording revenue and earnings. * On February 3, 2006, CBI announced, without explanation, the termination of Defendant Gerald M. Glenn, the Company's chairman, president and chief executive officer, and Defendant Robert B. Jordan, the Company's executive vice president and chief operating officer. The stock dropped 23% to $22.33 per share from $29.00. * Finally, before the market opened on February 15, 2006, the Company announced that it was slashing its 2005 guidance and that the Company was in communication with the SEC regarding the audit committee investigation. The stock dropped an additional $0.77 per share from its prior close of $22.95.

If you purchased CBI common stock from March 9, 2005 through and including February 14, 2006, you may wish to contact the following attorneys at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests.

Michael J. Pucillo, Esq. Jay W. Eng, Esq. Esperante Building 222 Lakeview Avenue, Suite 900 West Palm Beach, FL 33401 [phone]

If you wish to apply to be lead plaintiff in this action, a motion on your behalf must be filed with the court no later than April 18, 2006. You may contact the attorneys at Berman DeValerio to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action, or you may submit information online at http://www.bermanesq.com/Securities/Signup1.asp?caseid=566. Please note, you may also retain counsel of your choice and need not take any action at this time to be a class member.

Berman DeValerio Pease Tabacco Burt & Pucillo prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities fraud, antitrust law violations, and consumer fraud. The firm has 34 lawyers in Boston, San Francisco and West Palm Beach.

Contact: Jay W. Eng, Esq., [phone]