Everus ($ECG) Revenue Recognition and Investor Deception Case

The plaintiff has voluntarily dismissed the case, ending the lawsuit.

S.D. New York

Court

1:25-cv-02835

Case number

10/31/2024

Class period Start

02/11/2025

Class period End

06/03/2025

Lead Plaintiff motion deadline

$ECG investors filed a claim against Everus Construction for concealing delays in project timelines that would negatively affect revenue conversion.
After revealing slower-than-expected backlog conversion and a weak 2025 forecast, $ECG dropped 27.6% over two days.
$ECG investors can join this case to be notified about potential recovery.
Case Details:

On October 31, 2024, Everus Construction Group began trading on the NYSE after being spun off from MDU Resources. The company presented itself as a stable infrastructure contractor with a record $2.88 billion backlog and steady revenue growth. Management repeatedly assured investors that the company was well positioned for profitability, citing “strong momentum” and a healthy project pipeline.

Throughout late 2024, Everus issued multiple public statements reinforcing guidance and highlighting consistent demand. However, it failed to disclose that a growing share of its backlog consisted of larger, more complex, multi-year projects, which would push revenue recognition far into the future.

On February 11, 2025, Everus reported its fourth quarter and full-year 2024 results and finally admitted that its backlog conversion would be “extended” compared to historical trends. The company guided lower-than-expected 2025 revenue ($3.0–$3.1B) and EBITDA ($210–$225M)—signaling that previously implied growth targets would be missed.

Following the news, $ECG dropped 27.6% in two days.

Based on these events, $ECG investors filed a claim against Everus Construction, accusing the company of the following:
It misled investors by failing to disclose the true composition and delayed timing of its backlog.
It reaffirmed aggressive guidance while knowing that revenue would be pushed into future periods.
Considering all the representations, investors believe Everus concealed material risks about project execution timelines and misrepresented short-term growth potential.

Case Type

US Securities Class Action

Case Status

Voluntary Dismissed

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

02/11/2025

Filing date

04/04/2025

Lead Plaintiff Deadline

06/03/2025

Everus

Everus (EVR) is a platform that will leverage the Ethereum blockchain to empower their services. Services like an exchange, its own cryptocurrency ATM, a BaaS (Blockchain as a Service) enabling dec...

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