Wednesday, March 16, 2005


Legal Actions Against The Shaw Group Because of False and Misleading Statements

SHAW GROUP: Lerach Coughlin Lodges Securities Lawsuit in E.D. LA
Lerach Coughlin Stoia & Robbins LLP commenced a class action in
the United States District Court for the Eastern District of
Louisiana on behalf of purchasers of The Shaw Group, Inc. ("Shaw
Group") (NYSE:SGR) publicly traded securities during the period
between October 19, 2000 and June 10, 2004 (the "Class Period").

The complaint charges Shaw Group and certain of its officers and
directors with violations of the Securities Exchange Act of
1934. Shaw Group is a global provider of services to the power,
process and environmental and infrastructure industries.

The complaint alleges that defendants made false and misleading
statements about Shaw Group's finances, prospects and
acquisitions. As a result of defendants' false statements, Shaw
Group's stock traded at artificially inflated prices, trading as
high as $62.37 in April 2001. Defendants took advantage of this
inflation, selling $54.3 million worth of their personal Shaw
Group holdings and accomplishing two secondary offerings of Shaw
Group stock, raising more than $215 million in net proceeds.

On June 14, 2004, it was revealed that the SEC was investigating
Shaw Group's accounting for purchases, causing its stock to fall
to $10.05 on volume of 4.2 million shares. According to the
complaint, the positive statements about Shaw Group's business
during the Class Period were false or misleading when issued.
The true but concealed facts were:

(1) Shaw Group was prematurely recognizing income in
violation of Generally Accepted Accounting Principles
by releasing acquisition-related contract reserves into
earnings, boosting its profit by $200 million over
three and a half years; and

(2) Shaw Group's business was not performing as well as
represented and a significant number of its contracts
were not profitable, which it was concealing through
accounting manipulations, including improperly
accelerating revenue recognition under the percentage-
of-completion method of accounting.

For more details, contact William Lerach or Darren Robbins of
Lerach Coughlin Stoia & Robbins LLP by Phone: 800-449-4900 by E-
mail: or visit their Web site:

SHAW GROUP: Schatz & Nobel Lodges Securities Lawsuit in E.D. LA
The law firm of Schatz & Nobel, P.C. initiated a lawsuit seeking
class action status in the United States District Court for the
Eastern District of Louisiana on behalf of all persons who
purchased the publicly traded securities of The Shaw Group, Inc.
(NYSE: SGR) ("Shaw") between October 19, 2000 and June 10, 2004,
inclusive (the "Class Period"). Also included are all those who
acquired Shaw through its acquisitions of Badger Technologies,
The IT Group, Stone & Webster, or Energy Delivery Services and
all those who purchased shares in the secondary offering on
October 23, 2003.

The Complaint alleges that Shaw, a provider of complete piping
systems and comprehensive engineering procurement and
construction services, and certain of its officers and directors
issued materially false statements concerning Shaw's financial
condition. Specifically, defendants inflated Shaw's reported
revenues and earnings by improperly establishing and drawing on
reserve accounts established in connection with a series of
large acquisitions, including the acquisitions of Stone &
Webster and The IT Group. Additionally, defendants prematurely
recognized revenue in violation of Shaw's own purported policies
and Generally Accepted Accounting Principles, and failed to
disclose the extent to which Shaw was vulnerable to changes in
power generation market conditions.

On June 10, 2004, Shaw announced that the SEC was conducting an
inquiry focused on Shaw's accounting for acquisitions. On this
news, Shaw stock, which had traded as high as $62.37, fell 12.4%
to a closing price of $10.75 on June 14, 2004. During the class
period, Company insiders sold shares of Shaw for proceeds in
excess of $80 million. Additionally, during the Class Period,
Shaw sold $490 million convertible zero coupon, liquid yield
option notes.

For more details, contact Nancy A. Kulesa of Schatz & Nobel by
Phone: (800) 797-5499 by E-mail: or visit their
Web site:
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