McDermott Stuck With Investor Class, Subclasses in Merger Suit

McDermott International Inc. will have to face a class, with subclasses, of investors in a suit over the company’s 2018 acquisition of Chicago Bridge & Iron Co., the Fifth Circuit ruled Friday.

There are conflicts between investors who purchased McDermott shares on the market and former CB&I shareholders who received their McDermott shares in the merger, the US Court of Appeals for the Fifth Circuit said.

The ruling affirms a decision of the US District Court for the Southern District of Texas that certified subclasses but found a “fundamental conflict” between the sets of investors, requiring a reopened lead ...