The legal action centers on the company’s Q3 2025 earnings call, held just one day before the merger closed. During that session, management described MRC Global’s new Enterprise Resource Planning (ERP) system as a state-of-the-art solution for supply chain optimization. The firm allegedly dismissed previous software glitches as isolated incidents, a narrative that shifted dramatically by February 2026.
Hagens Berman Investigates DNOW Over MRC Global Merger Disclosures
Investors who held DNOW Inc. stock during the 2025 merger with MRC Global now face significant losses, prompting a class action lawsuit. Hagens Berman is investigating claims that the company misled shareholders by omitting critical information regarding enterprise software failures that crippled operations following the acquisition.
When DNOW reported its full-year 2025 financial results, the company revealed that persistent ERP challenges had caused a sharp decline in revenue. Management admitted that flawed software architecture led to operational slowdowns and forced a delay in financial guidance. The market reacted swiftly to the disclosure, sending DNOW stock down 19% in a single trading session. Partner Reed Kathrein is now spearheading the investigation into whether these integration failures were intentionally downplayed to secure shareholder approval for the deal. Investors who held common stock as of August 5, 2025, must file for lead plaintiff status by October 2, 2026.
Comments (0)
No comments yet. Be the first!