Everus Construction Group, Inc. (ECG) Securities Class Action Lawsuit Update [May 6, 2025]

Introduction to Everus Construction Group Lawsuit 

This is a shareholder alert about the Everus Construction Group, Inc. class action lawsuit filed on or about April 4, 2025 in the U.S. District Court for the Southern District of New York. The lawsuit seeks to recover losses of shareholders adversely affected by alleged securities fraud. Investors who purchased Everus common stock during the class period may be entitled to compensation without paying any out of pocket fees. Investors have until June 3, 2025 to file submissions for lead plaintiff in the Everus Construction securities fraud class action lawsuit.

Everus Construction is a construction company in the United States. It went public in 2024. On its prospectus, Everus disclosed its “backlog” – projects in its “queue” which it has yet to complete – is a possible source of future revenue. However, if backlog projects aren’t completed on time, potentially due to complex projects or other factors, that delay could impair the Company’s revenue recognition.  

In November 2024, Everus Construction touted its record backlog and revenue growth, boasting about its ability to meet long-term targets. But, in February 2025, it reversed course, saying its backlog times extended as projects were taking longer to complete (and thus revenue recognition was delayed). 

Investors reacted negatively to this news and Everus’ common stock price crashed 27.6% over the next two days.  

Everus Construction Lawsuit Case Details 

Scofield v. Everus Construction Group, Inc., et al  

Case No. 1:25-cv-02835 

U.S. District Court, Southern District of New York  

Filed on April 4, 2025 

Everus Construction Group Inc. Company Profile 

Everus Construction's business is to provide "electrical and mechanical, and transmission and distribution services across the United States,” according to its website. It operates locations in 17 states nationwide. Everus was formerly known as MDU Construction Services Group, Inc.  

Everus began publicly trading on the NYSE on October 31, 2024.   

Everus Construction Securities Lawsuit Class Period 

October 31, 2024 to February 11, 2025, inclusive.  

Individuals who acquired Everus Construction Common stock during the class period might be eligible for compensation through this class action lawsuit.  Some investors who held MDU Resources group common stock as of October 31, 2024 and acquired Everus Construction common stock in the spinoff might also be part class members eligible for compensation.  

Allegations against Everus Construction Group, Inc. 

Everus Construction filed a prospectus and registration statement in March 2024 in order to trade on the NYSE. In these documents, the Company explained one of its material risk factors as “Everus’ backlog may not accurately represent future revenue.” The Company further disclosed its “[b]acklog also may be affected by project delays or cancellations . . . Accordingly, there is no assurance that backlog will be realized.” 

The document further stated “[c]hanges in backlog from period to period are primarily the result of fluctuations in the timing of revenue recognition of contracts.”  

On November 6, 2024, Everus Construction issued a press release announcing its Q3-24 financial results. Those results included increased year-over-year revenue and revenue. The Company also touted a 43.5% increase in its backlog, stating “[w]ith our all-time record backlog of $2.88 billion at the end of the quarter, which is up $873.9 million since the start of the year . . . we are well-positioned to deliver on our long-term targets . . .”  

The Complaint filed against Defendants alleges Everus Construction made deceptive, false or misleading statements during the class period, in violation of federal securities law, such as the Securities Exchange Act. Plaintiffs allege that Everus Construction and its executives failed to disclose the Company's backlog conversion cycle was elongated due to more complex projects, thus delaying Everus Construction's revenue recognition. Thus, Defendants’ statements about Everus Construction's business prospects were misleading or deceptive. 

The Truth Emerges  

On February 11, 2025, Everus Construction issued a press release announcing its Fourth Quarter 2024 and Fiscal Year 2024 financial results, including a backlog of $2.8 billion.     

During the associated earnings call, Everus Construction executives revealed its “conversion backlog” would be “extended” over the next few quarters. The extended backlog conversion meant Everus Construction's revenue recognition from its backlog would take longer, potentially harming future revenue.  

Market Reaction 

Investors reacted negatively to this news.  Everus Construction common stock price dropped 27.6% over the next two days.  

Next Steps 

• Submissions for lead plaintiff are due June 3, 2025. 

• The Court will issue its order for lead plaintiff and counsel in the weeks after lead plaintiff submissions are due. 

• The Court will then consider motion for class certification. 

• The Court will later consider a Motion to Dismiss. 

To learn whether you may be eligible for a recovery under this class action, go to the case submission page found here.