Northwest Pipe Company Hit by Shareholder Lawsuit

An investor in Northwest Pipe filed a lawsuit in the United States District Court, Western District of Washington on behalf of purchasers of the securities of the Company between April 23, 2008 and November 11, 2009, against Northwest Pipe Company (Nasdaq: NWPX) and certain of its top officials over alleged violations of Federal Securities Laws.

According to the complaint the plaintiff alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act and Rule 10b-5 by the Northwest Pipe Company and certain of its top officials. The Complaint alleges that between April 23, 2008 and November 11, 2009 defendants issued materially false and misleading statements regarding the Northwest Pipe's business and financial results. Specifically, the plaintiff alleges the defendants overstated Northwest Pipe’s revenues and earnings by failing to recognize revenues in accordance with Generally Accepted Accounting Principles and as a result of the challenged statements, Northwest Pipe common stock traded between April 23, 2008 and November 11, 2009, at artificially inflated prices.

Then on November 11, 2009, Northwest Pipe announced that it was delaying the filing of its Quarterly Report for the quarter ended September 30, 2009, pending the conclusion of an ongoing internal investigation of certain accounting matters. On November 12, 2009, Northwest Pipe Company (NWPX) fell 14% or $4.49 and closed at $26.74 after the maker of welded steel pipes said it has delayed the release of its third-quarter financial results. Northwest Pipe Company announced that the financial report for the three months ended September 30 has been delayed "pending the conclusion of an ongoing internal investigation of certain accounting matters, including certain revenue recognition practices." The investigation is being conducted by the board of directors' audit committee and independent professionals, . Northwest Pipe Company said. Northwest Pipe plans to publish the results "as soon as practicable" after the investigation and any further accounting work that may be needed.

Northwest Pipe Company, located in Vancouver, WA, is a manufacturer of large-diameter, high-pressure steel pipeline systems for use in water infrastructure applications, primarily related to drinking water systems. The Company’s pipeline systems are also used for hydroelectric power systems, wastewater systems, and other applications. Northwest Pipe Company reported in 2007 Total Revenue of $382.82million with a Net Income of $20.83million and in 2008 Total Revenue of $439.74million with a Net Income of $32.30million. Shares of Northwest Pipe Company (NASDAQ:NWPX) traded recently at $26.53 per share, down from its 52weekHigh of $46.29 per share and $63.00 per share in September 2008.