The lawsuit centers on the integration of a new Enterprise Resource Planning system at MRC Global, which DNOW management previously touted as a state-of-the-art solution for supply chain optimization. Just one day before the merger closed in September 2025, executives dismissed earlier software glitches as isolated events. However, by February 2026, the company admitted that the system suffered from flawed architecture, causing persistent operational slowdowns and forcing a delay in financial guidance.
Hagens Berman partner Reed Kathrein is spearheading the investigation, focusing on whether proxy materials intentionally downplayed these risks to move the deal forward. Investors who held DNOW common stock as of August 5, 2025, are eligible to participate in the litigation. The deadline for potential lead plaintiffs to file with the court is October 2, 2026. Beyond the class action, the firm is also soliciting information from whistleblowers who may possess non-public details regarding the merger’s internal approval process.
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