Important Information Regarding Section 20(a) Individual Liability Claims
NEW YORK, April 30, 2026 /PRNewswire/ -- SueWallSt alerts investors in Babcock & Wilcox Enterprises, Inc. (NYSE: BW) of a pending securities class action. Class Period: November 5, 2025 through March 11, 2026. Check if you can recover your investment losses or contact Joseph E. Levi, Esq. at jlevi@SueWallSt.com | (888) SueWallSt.
Two senior executives of Babcock & Wilcox are named as individual defendants in the action, which alleges they personally controlled the contents of SEC filings and press releases that overstated the value and legitimacy of a $2.4 billion power generation contract. Following a short seller report exposing undisclosed related-party ties, BW shares fell $1.71 per share, or 11.59%. The Court has set June 15, 2026 as the deadline to apply for lead plaintiff appointment.
The Named Individual Defendants
The complaint names Kenneth M. Young, Chairman and CEO, and Cameron Frymyer, Executive Vice President and CFO, as control person defendants under Section 20(a) of the Securities Exchange Act of 1934. The action contends that both officers possessed the power and authority to control the contents of the Company's SEC filings, press releases, and other market communications throughout the Class Period.
Section 20(a) Control Person Framework
Section 20(a) imposes liability on every person who directly or indirectly controls any person liable under Section 10(b). The complaint asserts that Young and Frymyer were provided with copies of B&W's SEC filings and press releases prior to or shortly after their issuance and had the ability and opportunity to prevent their issuance or to cause them to be corrected.
Sarbanes-Oxley Certification Obligations
As CEO and CFO respectively, Young and Frymyer were required under Sections 302 and 906 of the Sarbanes-Oxley Act to personally certify the accuracy and completeness of the Company's periodic SEC filings. The pleading asserts that these certifications were made while the officers knew or recklessly disregarded that:
- B&W's largest shareholder, BRC, stood on both sides of the Power Generation Contract through its Co-CEO Bryant Riley's directorship of counterparty Base Electron
- Applied Digital could unilaterally terminate its guarantee of Base Electron's obligations for as little as $50 million on a purportedly $2.4 billion contract
- The Company's reported pipeline and backlog figures were materially overstated by the inclusion of a contract whose counterparty did not exist when the preliminary agreement was signed
- The ATM Offering raising $67.5 million was executed while the market was allegedly misinformed about the nature and reliability of the Power Generation Contract
Scienter Allegations
As averred in the complaint, the individual defendants had both motive and opportunity to commit fraud. B&W closed the ATM Offering for $67.5 million shortly after announcing the Power Generation LNTP, before reopening sales less than one week later. BRC subsequently sold its entire directly-held position in B&W common stock for approximately $10.4 million at a price 140% above the pre-announcement level.
"Corporate officers have a duty to ensure their companies' public statements are accurate and complete. When executives certify SEC filings under Sarbanes-Oxley, they accept personal responsibility for the truthfulness of those disclosures." -- Joseph E. Levi, Esq.
Speak with an attorney about recovering damages or call (888) SueWallSt.
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Frequently Asked Questions About the BW Lawsuit
Q: Who are the defendants named in the BW lawsuit? A: The complaint names Babcock & Wilcox Enterprises, Inc. and individual defendants including Chairman and CEO Kenneth M. Young and Executive Vice President and CFO Cameron Frymyer, who signed SEC filings and made public statements during the Class Period.
Q: What specific misstatements does the BW lawsuit allege? A: The complaint alleges Babcock & Wilcox made materially false or misleading statements regarding a $2.4 billion power generation contract, failing to disclose related-party ties between BRC and the contract counterparty and that the guarantor could exit for as little as $50 million. When the true state was revealed, the stock price declined sharply.
Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.
Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: What if I already sold my BW shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the class period and sold at a loss may still participate.
Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. You submit a claim form to receive your portion of recovery.
Q: How long will the lawsuit take to resolve? A: Securities class actions typically take two to four years from initial filing to resolution.
CONTACT:
SueWallSt
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@SueWallSt.com
Tel: (888) SueWallSt
Fax: (212) 363-7171
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SOURCE SueWallSt.com
