STORY FROM: Asbestos
Louisiana Federal Judge Dismisses Babcock & Wilcox Fraud Suit
December 1, 2000
NEW ORLEANS - McDermott International Inc.'s motion to dismiss a securities fraud class action, arising from the Chapter 11 bankruptcy filing of its subsidiary Babcock & Wilcox Co., has been granted by a federal judge in Louisiana. Tarica v. McDermott International Inc., et al., No. 99-3831 & cons cases section: 'R'(5) (ED La.)
Judge Sarah S. Vance determined that plaintiffs failed to plead their allegations of fraud with sufficient particularity and failed to plead facts sufficient to give rise to a strong inference that defendants acted with scienter.
Moreover, she said McDermott's forward-looking statements were entitled to safe harbor ...