Partner Reed Kathrein Urges DNOW Investors to Contact Firm
DNOW Inc. (DNOW) Securities Class Action
SAN FRANCISCO, Aug. 31, 2026 (GLOBE NEWSWIRE) — National shareholder rights law firm Hagens Berman encourages investors in DNOW Inc. (NYSE: DNOW) who suffered substantial losses submit your losses now. A securities class action lawsuit has been filed regarding potential violations of federal securities laws involving DNOW’s acquisition of MRC Global Inc. and undisclosed enterprise software integration failures in the merger proxy materials.
- Lead Plaintiff Deadline: Oct. 2, 2026
- Defined Investor Class and Record Date: Shareholders who held DNOW common stock as of the August 5, 2025 record date and were thus entitled to vote at DNOW’s September 9, 2025 special meeting on the merger of DNOW and MRC Global
Investors with significant losses are urged to contact the firm to review their options:
- Visit: www.hbsslaw.com/dnow
- Emai: [email protected]
- Call Direct: 844-916-0895
Allegedly Misleading Proxy Materials:
The suit alleges that the Proxy Materials misrepresented and omitted to disclose challenges posed with DNOW’s merger with MRC Global Inc. as a result of material issues affecting MRC Global’s new ERP system.
The Truth Allegedly Emerges
- November 5, 2025 — Reassurances Before Acquisition: The complaint alleges that on DNOW’s Q3 2025 earnings call—the day before closing the merger—management assured investors that MRC Global had implemented a “state-of-the-art” Enterprise Resource Planning (ERP) system that promised “improved inventory management, order processing efficiency, and supply chain optimization.” DNOW allegedly minimized integration risks, reassuring the market that MRC’s past software glitches were merely an “isolated, one-time event.”
- February 20, 2026 — The Disclosures: DNOW reported its Q4 and full-year 2025 financial results, revealing that MRC revenues had sharply declined due to “persistent ERP challenges” and acknowledging that MRC’s software implementation was, in fact, an “obstacle.”
- Operational Flaws & Guidance Delay: Management conceded that flawed software design architecture caused severe operational slowdowns, impeded customer service, and required substantial unexpected capital expenditure to remediate. Consequently, DNOW was forced to delay its sequential and full-year 2026 financial guidance.
- Market Impact: On this news, DNOW stock crashed 19% in a single trading session.
Statement from Hagens Berman Partner Reed Kathrein
“We are focused on whether the Proxy Materials downplayed ERP integration failures at MRC Global allowing management to push the deal through, as the complaint alleges,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation of the claims in the pending suit.
What DNOW Investors & Whistleblowers Can Do
- DNOW Investors: If you purchased DNOW common stock and sustained significant losses, you may be eligible to take an active role in the class action. The court-appointed lead plaintiff deadline is October 2, 2026. Submit your loss details here.
- Whistleblowers: Persons with non-public information regarding DNOW should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
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Contact: Hagens Berman, Reed Kathrein, 715 Hearst Avenue, Suite 300, Berkeley, CA 94710, 844-916-0895, [email protected]
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/18e7a589-320b-448e-bb74-774c5f905955
