BW Investor Alert: Babcock & Wilcox Enterprises Securities Fraud Lawsuit - Investors With Losses May Seek to Lead the Class Action After Company Allegedly Fabricated Contract Value: Levi & Korsinsky

Promise vs. Reality: The Babcock & Wilcox Performance Gap

NEW YORK, May 04, 2026 (GLOBE NEWSWIRE) -- B&W promised investors a "$2.4 billion" contract that would transform the Company. The reality: Applied Digital could walk away from its guarantee for as little as $50 million, just 2% of the headline figure.

Find out if you qualify to recover losses from B&W's broken promises or contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.

Shares of Babcock & Wilcox Enterprises, Inc. (NYSE: BW) fell $1.71 per share, or 11.59%, on March 12, 2026, after a short seller report exposed the gap between what the Company told shareholders and what the contract terms actually provided. The lead plaintiff deadline is June 15, 2026.

The Promise

Throughout the Class Period of November 5, 2025 through March 11, 2026, the Company aggressively marketed its power generation agreement as a landmark transaction. According to the lawsuit, management told investors the project was valued "at over $1.5 billion," later upgraded to "$2.4 billion," and described the deal's impact as "profound." The Company projected the contract would add "over $3 billion to our pipeline" and represent "complete upside and probably significant upside" beyond its 2026 EBITDA guidance of $70 million to $85 million.

The stock responded accordingly, surging 198% from $3.74 to $11.15 in three months.

The Reality

The action contends that behind the headline figures, the contract's actual economics told a starkly different story:

• Promised contract value: $2.4 billion. Only $434 million was a fixed fee. The remaining $1.96 billion was variable and unguaranteed.
• Promised counterparty backing: Applied Digital guarantee. Applied Digital could terminate that guarantee for $50 million before August 1, 2026, or $100 million after.
• Promised independent counterparty: Base Electron, a "newly formed" IPP. Base Electron's registered address matched the headquarters of B&W's largest shareholder, BRC, and BRC's Co-CEO and Chairman Bryant Riley sat on Base Electron's board.
• Promised market need: power for AI data centers. Wolfpack Research's analysis indicated Applied Digital's existing and planned campuses already had grid power arrangements in place.
• Promised pipeline expansion: $10 billion+ global pipeline. The complaint alleges a substantial portion of that pipeline rested on a single related-party contract with a $50 million exit clause.
  
  

What the Lawsuit Alleges About the Gap

The filing states that the Company's largest shareholder, BRC, "stood on both sides" of this transaction. While investors were absorbing the $2.4 billion headline, BRC sold its entire directly-held B&W position for approximately $10.4 million at $9 per share, a 140% premium over the pre-announcement price. The complaint charges that the Power Generation Contract's true purpose was not to generate revenue for B&W but to inflate the stock price and provide exit liquidity for BRC.

When Wolfpack Research published its findings on March 12, 2026, the market repriced B&W shares downward by 11.59% in a single session.

"Companies that make specific promises to investors about future performance have an obligation to disclose known risks to those projections. When the gap between what was promised and what the underlying terms actually provided is this wide, shareholders deserve answers." -- Joseph E. Levi, Esq.

Speak with an attorney about recovering your B&W investment losses or call (212) 363-7500.

LEAD PLAINTIFF DEADLINE: June 15, 2026

About Levi & Korsinsky, LLP

Levi & Korsinsky, LLP is a nationally recognized shareholder rights firm. Over the past 20 years, the firm has secured hundreds of millions of dollars for aggrieved shareholders. Ranked in ISS Top 50 for seven consecutive years.

Frequently Asked Questions About the BW Lawsuit

Q: What specific misstatements does the BW lawsuit allege? A: The complaint alleges Babcock & Wilcox made materially false or misleading statements regarding the value, independence, and commercial viability of its $2.4 billion power generation contract with Base Electron during the Class Period of November 5, 2025 through March 11, 2026. When the true terms and related-party nature of the deal were revealed, the stock price declined sharply.

Q: When did Babcock & Wilcox allegedly mislead investors? A: The Class Period runs from November 5, 2025 to March 11, 2026. The alleged misrepresentations were revealed through a Wolfpack Research short report published on March 12, 2026, causing an 11.59% stock decline.

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: How long will the lawsuit take to resolve? A: Securities class actions typically take two to four years from initial filing to resolution.

Q: What if I missed the lead plaintiff deadline? A: The deadline applies only to investors seeking lead plaintiff appointment. Class members who miss it can still participate in any settlement or recovery.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171

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