Fluor Corporation Shareholder Derivative Action Filed – Breach of Fiduciary Duties, Unjust Enrichment, and Securities Exchange Act Violations Alleged – Kehoe Law Firm, P.C. Investigating Breach of Fiduciary Duty Claims
Kehoe Law Firm, P.C. is making investors aware that on April 10, 2020, a shareholder derivative action was filed in United States District Court for the District of Delaware seeking to remedy the individual Fluor Corporation Defendants’ breach of fiduciary duties, unjust enrichment, and violations of Section 10(b) of the Securities Exchange Act of 1934 that occurred between November 2, 2017 to the present (the “Relevant Period”) and which have caused substantial harm to Fluor Corporation (NYSE: FLR).
According to the complaint, the Fluor Corporation Defendants,
[t]hroughout the Relevant Period, . . . inflated the Company’s revenue and earnings by improperly recognizing revenue on sixteen (16) separate projects. Once awarded a contract to perform work on a project, the Company would routinely submit ‘change forms’ to its clients in which the Company would request additional funds to cover its cost overruns that resulted from ‘unforeseen circumstances,’ funds which the client was not contractually obligated to pay. When the Company determined, through its own assessment, that it was ‘likely’ that the client would accept their change order, the Company would book the additional revenue. This was contrary to the assurances to the market that the Company would only recognize revenue from its submission of these change orders if it determined that ‘recovery of incurred costs is probable and the amounts can be reliably estimated.’
Defendants had been secretly utilizing change orders, among other tactics, to improperly inflate the Company’s revenue and earnings by recognizing additional revenue on its contracts despite having no reasonable basis to do so.
Have You Held Fluor Corporation Stock Continuously Since November 2017?
Fluor Corporation investors who have owned FLR shares continuously since November 2017 are encouraged to contact either Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], or John Kehoe, Esq, (215) 792-6676, Ext. 801, [email protected], to discuss potential legal claims.