Snapshot from Aug 26, 2026 at 07:00 UTC. For live data and tracking: View Live
Events / Regulatory / DNOW class action over MRC ERP failures
Regulatory securities class action

DNOW class action over MRC ERP failures

Analysis based on 6 articles · First reported Aug 19, 2026 · Last updated Aug 25, 2026

Sentiment
-30
Attention
2
Articles
6
Market Impact
General
Live prominence charts, article sentiment distribution, and event development timeline available on the Ergen Dashboard
Market Impact

The news of the class action and the underlying ERP failures have negatively impacted DNOW's stock, which fell 19% on the disclosure. The lawsuit could lead to financial penalties and reputational damage for DNOW, while MRC Global's integration issues may continue to affect its operations and revenue.

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Event Summary

A securities class action lawsuit has been filed against NOW Inc. alleging that the company violated federal securities laws by issuing misleading proxy materials in connection with its acquisition of MRC Global Inc. The complaint claims that DNOW failed to disclose significant problems with MRC Global's new ERP system, which later caused operational slowdowns, revenue declines, and forced DNOW to delay its 2026 financial guidance. On February 20, 2026, DNOW reported Q4 and full-year 2025 results revealing persistent ERP challenges, causing its stock to crash 19% in a single session. Hagens Berman is representing investors and has set a lead plaintiff deadline of October 2, 2026.

Key Actions
100 NOW Inc. reported financial results
90 Hagens Berman filed securities class action NOW Inc.
80 NOW Inc. delayed financial guidance
70 NOW Inc. assured investors
Entities Involved
stock
NOW Inc.
DNOW is the primary defendant in the class action and the company whose stock crashed 19% after disclosing ERP challenges. The lawsuit and operational issues could lead to significant financial and reputational harm.
Importance 100.0 Sentiment -60.0
stock
MRC Global
MRC Global's ERP system failures are the core issue behind the lawsuit and the revenue decline. The company's integration problems have negatively affected its own operations and the combined entity's performance.
Importance 80.0 Sentiment -50.0
priv
Hagens Berman
Hagens Berman is the law firm leading the class action, which could result in significant recoveries for investors and enhance the firm's reputation in securities litigation.
Importance 60.0 Sentiment 20.0
per
Reed Kathrein
Reed Kathrein is the partner leading the investigation and is a key figure in the litigation, potentially gaining prominence from the case.
Importance 40.0 Sentiment 10.0
govactor
United States — United States Securities and Exchange Commission
The SEC is mentioned in the context of the whistleblower program, which could provide incentives for individuals to report information related to the alleged securities violations.
Importance 30.0 Sentiment 0.0
Relationships
Hagens Berman related ↔ Reed Kathrein
Hagens Berman securities litigator ↔ United States — United States Securities and Exchange Commission Hagens Berman is a national class-action law firm that frequently files securities fraud lawsuits against corporations,
Reed Kathrein securities litigator ↔ United States — United States Securities and Exchange Commission Reed Kathrein is a partner at Hagens Berman who specializes in securities fraud class action lawsuits, representing inve
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