National law firm urges DNOW Inc. investors to act by Oct 2
SAN FRANCISCO, Sept. 1, 2026 /CourierPR/ -- A national law firm is urging investors in DNOW Inc. (NYSE: DNOW) who suffered significant losses to take action by October 2, 2026. The firm, Hagens Berman, has filed a securities class action lawsuit alleging potential violations of federal securities laws related to DNOW's acquisition of MRC Global Inc. and undisclosed enterprise software integration issues in the merger proxy materials.
The lawsuit, which centers on alleged misrepresentations and omissions in the Proxy Materials, seeks to hold DNOW accountable for failing to disclose critical information regarding MRC Global's ERP system. According to the complaint, DNOW's management gave misleading assurances to investors just before the merger, downplaying the risks associated with MRC's software integration.
### Key Allegations and Timeline
- November 5, 2025: On the eve of the merger, DNOW's Q3 2025 earnings call provided reassurances to investors. Management claimed that MRC Global's new ERP system was "state-of-the-art," promising improved inventory management and supply chain optimization. DNOW allegedly minimized any potential integration issues, labeling past software glitches as "isolated, one-time events."
- February 20, 2026: DNOW issued its Q4 and full-year 2025 financial results, revealing that MRC Global's revenues had significantly declined due to persistent ERP challenges. DNOW admitted that the software implementation was indeed an "obstacle" for the company.
- Operational Flaws and Guidance Delay: Due to flawed software design, DNOW experienced severe operational slowdowns, affected customer service, and required substantial unexpected capital expenditures. These issues necessitated the company to delay its financial guidance for 2026.
- Market Reaction: The news sent DNOW's stock plummeting 19% in a single trading session, highlighting the financial impact of these misrepresentations.
### Legal Action and Investor Rights
Hagens Berman is seeking to appoint a lead plaintiff to represent the class of investors who suffered substantial losses as a result of these alleged violations. Interested investors are encouraged to contact the firm to review their options:
Reed Kathrein, a partner at Hagens Berman, stated, "We are focused on whether the Proxy Materials downplayed ERP integration failures at MRC Global, allowing management to push the deal through, as the complaint alleges." Kathrein noted that the firm is investigating the claims to determine the validity of the lawsuit.
### Whistleblower Incentives
For individuals with non-public information, Hagens Berman offers incentives through the SEC Whistleblower program. Under the program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.
### Background on Hagens Berman
Hagens Berman Sobol Shapiro LLP is a global plaintiffs' rights firm with a history of achieving significant results for its clients. The firm represents investors, whistleblowers, workers, and consumers in cases involving corporate negligence and other wrongdoing. Hagens Berman has secured more than $2.9 billion in settlements in this area of law.
Attorney Advertising. Prior results do not guarantee a similar outcome in any future case.