HALLIBURTON SECURITIES LITIGATION:
Inside the Class Action

Presented by:
Truth in Corporate Justice™ LLC of the Worldwide Tree Group™

POWER TO EMPOWER™

This website concerns the Halliburton Securities Class Action Litigation. The case is pending before the Honorable Barbara M.G. Lynn, of the U.S. District Court for the Northern District of Texas. This website is presented by Truth in Corporate Justice LLC, Special Counsel to the Lead Plaintiff, and it is not representing the views of any entity or person other than itself.

Lead Plaintiff Will Substitute Counsel in Halliburton (NYSE:HAL) Securities Litigation

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HALLIBURTON SECURITIES LITIGATION SIMPLY STATED:
THIS IS LITIGATION—NOT A MEDIA WAR

The Lead Plaintiff, the Archdiocese of Milwaukee Supporting Fund, Inc. ("AMS Fund") brought this action against Halliburton - the company and against individual defendant officers Lesar, Muchmore, Morris, and Foshee. This is a purported securities fraud class action brought pursuant to the Securities Exchange Act of 1934 that asserts sections 10(b) and 20(a) claims on behalf of purchasers of Halliburton Company stock from June 3, 1999 and December 7, 2001. This case alleges a scheme to falsify Halliburton's second quarter 1999-2001 financial results. Material misrepresentations of the alleged fraud include:

1. The claimed success of the restructuring of the construction business;
2. The performance and accounting for the companies fixed - price construction contracts;
3. The claimed strengthening of Halliburton's balance sheets and income gains achieved by the Dresser acquisition; and
4. Its lack of material public disclosure of asbestos suit liabilities.

As the Lead Plaintiff alleges in the Fourth Consolidated Amended Complaint, the defendants' misstatements concealed serious problems in Halliburton's construction operations. These alleged misstatements concealed enormous unpaid change orders and cost overruns - or the unapproved claims – on fixed/priced contracts and the negative affect of addressing material problems of Dresser Industries, Inc., which included billions of dollars in asbestos liabilities that Halliburton had to incur.

In addition, the Lead Plaintiff alleges that defendants falsified Halliburton accounting records to conceal hundreds of millions of dollars in losses on the construction contracts and to conceal the actual extent of asbestos liabilities. Through this scheme the Halliburton stock price was artificially inflated to 59 dollars allowing the insiders to make millions of dollars in bonuses and to sell 1.3 million in shares or 61% of their holdings for a total of $68 million. When the actual conditions became known, the stock price plummeted from 51 dollars to 34 dollars (a 33% decrease) in October of 2000, then plunged from 49 dollars to 29 dollars (a 24.5% decrease) between June 2001 through July 2001. In December 2001, the price fell from 21 dollars to 10 dollars (a 19% decrease). As additional news from the initial disclosure was revealed, the price continued to go down. In just 15 months (October 2000-December 2001), the overall stock price decline was 80.4%.

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