The litigation, spearheaded by Hagens Berman, targets the accuracy of proxy materials provided to shareholders ahead of the September 9, 2025, merger vote. While management touted MRC Global’s new ERP system as a state-of-the-art solution for supply chain optimization during a November 2025 earnings call, the complaint alleges these assurances masked persistent, underlying technical defects.
Disclosures in February 2026 revealed that the software implementation was fundamentally flawed, leading to operational bottlenecks and a forced delay in the company's 2026 financial guidance. Following these revelations, DNOW stock plummeted 19% in a single trading session. Partner Reed Kathrein stated the firm is investigating whether the proxy materials intentionally omitted the scale of these integration risks to secure shareholder approval for the deal. Investors who suffered significant losses are encouraged to submit their details to the firm, while those with non-public information regarding the merger are being urged to consider the SEC whistleblower program.
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