Abrams v. Baker Hughes Inc.

In general terms, Plaintiffs allege that Defendants fraudulently misrepresented the effectiveness of Baker Hughes’s internal accounting controls, and that Plaintiffs, having relied on these representations, were damaged when the company later revealed the true state of its financial affairs. They contend that as Baker Hughes merged or acquired other entities the accuracy of company-wide accounting practices deteriorated. Methods for reporting asset values and earnings, for example, differed from one business unit to the next. Plaintiffs allege that the lack of a single, coherent accounting…