Louisiana-based Gulf Island Fabrication, Inc. (NASDAQ: GIFI), through its subsidiaries, engages in the fabrication and refurbishment of drilling and production platforms, and other specialized structures used in the development and production of offshore oil and gas reserves. On March 1, 2007, after the close of trading, the Company disclosed that that the amount of revenue it had recognized on a contract during the first three quarters of 2006 was overstated and it will restate its financial statements for those periods. Not surprisingly, its stock plummeted on this news. Some argue that such restatements don’t really matter and stocks soon bounce back after such announcements. What has happened to GIFI is probably more accurate. Its announcement had an immediate impact on shareholder value and its stock hasn’t recovered.
It appears that investors who purchased GIFI between April 26, 2006 and March 1, 2007, are affected. We are investigating this matter and affected investors may wish to contact us.
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