According to a press release a law firm is currently investigating possible securities law violations by McDermott International Inc (NYSE:MDR) between January 1, 2008 through November 5, 2008,

According to the press release the investigation focuses on possible securities law violations by McDermott International Inc (NYSE:MDR) as a result of the announcement of markedly reduced third quarter earnings, which included a $90 million charge at the gross-margin level on three large on-going construction contracts wherein McDermott International Inc (NYSE:MDR) and certain of its officers appeared to have known for a significant period of time that these contracts were substantially delayed and could not be completed without negatively affecting margins in the itss oil and gas construction segment going forward.
Furthermore despite the fact that certain McDermott International Inc (NYSE:MDR) officers knew that the delays and other problems with the contracts would require material write-downs, the adverse news was not timely disclosed and it was only upon the Company having appointed a new Chief Executive Officer who launched an investigation of the contract situation that the facts were finally revealed in conjunction with the report of the McDermott International Inc (NYSE:MDR) s third quarter results, and material charges were recorded against earnings, and as a result of the disclosure of this material adverse news, McDermott International Inc (NYSE:MDR) shares dropped 33%, and have continued to decline, so the investigation.

In addition according to the press release McDermott International Incs former Chief Executive Officer, who recently retired, sold millions of dollars of his own shares during 2007 and 2008 at prices far in excess of McDermott International Inc s current share price, and failed to disclose any of this material adverse information, although it appears to have been known within the McDermott International Inc. (NYSE:MDR) .