McDermott Merger Case Spotlights Class Conflict Issues (Correct)

McDermott International Inc. told the Fifth Circuit that its investors can’t share a class representative with investors in a troubled company the engineering and construction firm acquired.

Investors in Chicago Bridge & Iron Co., the company acquired by McDermott in 2018, would’ve been left with worthless shares without the merger, an attorney for McDermott said at oral argument. So CB&I’s investors benefited from the merger and McDermott’s didn’t, creating a conflict between the two sets of shareholders in the suit for securities fraud, Amy Pharr Hefley of Baker Botts LLP told the US Court of Appeals for the Fifth Circuit. ...