WBRZ - Baton Rouge

BATON ROUGE - A shareholder group filed a lawsuit against The Shaw Group, some of its executives, and Chicago Bridge & Iron Company in district court. KBC Asset Management claims that Shaw breached its fiduciary duty of due care owed to shareholders.

The CB&I and Shaw merger was announced in July. All outstanding shares of Shaw were valued at $3.04 Billion. Investors received about $41 per share and about $5 worth of CB&I equity. The lawsuit claims that the stock was undervalued.

The plaintiff's attorney sent WBRZ this statement:
"The suit was filed by concerned shareholders that feel the currently available information does not adequately support this sale and they want to know the rest of the story. They want full disclosure and fair pricing," Motley Rice, LCC attorney Joseph F. Rice.

The Shaw Group sent WBRZ an e-mail saying that it is company policy not to respond on pending litigation.