Securities Class Action Filed Against DNOW Inc. Over MRC Merger Allegations
News related to:DNOW Inc · 1 min read
National shareholder rights law firm Hagens Berman has filed a securities class action lawsuit against DNOW Inc. (NYSE: DNOW) on behalf of investors who suffered substantial losses due to alleged violations of federal securities laws. The lawsuit centers on DNOW's acquisition of MRC Global Inc. and undisclosed enterprise software integration failures in the merger proxy materials.
According to the lawsuit, DNOW's proxy materials allegedly misrepresented and omitted critical information regarding the challenges faced by MRC Global's new ERP system. The firm claims that DNOW downplayed integration risks, reassuring the market that MRC's past software glitches were merely an "isolated, one-time event."
The truth emerged in February 2026 when DNOW reported its Q4 and full-year 2025 financial results, revealing that MRC revenues had sharply declined due to "persistent ERP challenges." Management conceded that flawed software design architecture caused severe operational slowdowns, impeded customer service, and required substantial unexpected capital expenditure to remediate. As a result, DNOW was forced to delay its sequential and full-year 2026 financial guidance. The news sent DNOW stock crashing 19% in a single trading session.
Hagens Berman is encouraging investors who purchased DNOW common stock as of the August 5, 2025 record date and were thus entitled to vote at DNOW's September 9, 2025 special meeting on the merger of DNOW and MRC Global to contact the firm to review their options. The lead plaintiff deadline is October 2, 2026. Investors can visit www.hbsslaw.com/dnow or email [email protected] for more information. The firm also offers direct contact via phone at 844-916-0895.
The firm has a history of securing significant recoveries, having secured more than $2.9 billion in this area of law. Kathrein added, "Persons with non-public information regarding DNOW should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC."