DNOW Under Investigation for Alleged Misleading ERP Disclosures Following 19% Stock Drop
DNOW sits 20% above its 52-week low of $10.935.
Summary
Shareholder rights firm Hagens Berman has launched an investigation into DNOW Inc. for potential federal securities law violations. The probe focuses on DNOW's disclosures regarding enterprise resource planning (ERP) issues at its acquired company, MRC Global. DNOW management had previously assured investors in November 2025 that MRC's ERP system was robust and issues were isolated. However, the company later revealed in its February 2026 Q4 and FY 2025 results (following the 10-K filing) that persistent ERP challenges led to revenue declines and inefficiencies, causing the stock to drop 19% and delaying future guidance. This new investigation introduces significant legal and financial risk for DNOW.
At the time of this announcement, DNOW was trading at $13.10 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $2.4B. The 52-week trading range was $10.94 to $17.26. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: PR Newswire.