McDermott Says Investors’ Derivative ‘Scrubbing’ Fails on Appeal

Oct. 20, 2025, 6:38 PM UTC

McDermott International Inc. urged a federal appeals court to affirm a ruling in its favor, saying investors are just trying to pass off derivative claims as direct, so a lower court was right to toss their case over the engineering company’s Chicago Bridge & Iron Co. buyout.

The main allegation is the $6 billion merger’s proxy statement caused McDermott to buy CB&I when it was allegedly “besieged by problematic projects,” McDermott, CB&I, and certain leaders from that time said in a brief filed in the US Court of Appeals for the Fifth Circuit. Investors are resting on the theory that ...

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