Hagens Berman Files Class Action Against DNOW Over Merger Disclosures

The complaint alleges that DNOW’s merger proxy materials misrepresented the stability of MRC Global’s enterprise resource planning system. Just one day before the merger closed on November 5, 2025, management assured shareholders that MRC’s software was state-of-the-art and that previous technical glitches were isolated events. These claims were contradicted on February 20, 2026, when DNOW revealed that persistent software architecture flaws had caused significant operational slowdowns and hampered customer service.

The disclosure forced DNOW to delay its financial guidance, triggering a 19% drop in the company's stock price during a single trading session. Reed Kathrein, the Hagens Berman partner leading the litigation, stated that the firm is investigating whether management downplayed these integration risks to ensure the deal reached completion. Investors who suffered losses are encouraged to contact the firm, while individuals with non-public information regarding the merger may explore options under the SEC Whistleblower program.