Law Firm Investigating Babcock & Wilcox Enterprises for Potential Securities Violations

Lowey Dannenberg P.C. is looking into claims regarding a $2.4 billion contract and potential conflicts of interest.

Mar. 16, 2026 at 2:38pm

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Lowey Dannenberg P.C., a law firm specializing in investor protection, has launched an investigation into Babcock & Wilcox Enterprises Inc. (NYSE: BW) for potential violations of federal securities laws. The investigation follows a short seller report that questioned the viability of a recently announced $2.4 billion contract between B&W and Base Electron, which the report alleged may have conflicts of interest due to shared leadership and addresses with B&W shareholder B. Riley Financial.

Why it matters

Allegations of corporate fraud and conflicts of interest can significantly impact investor confidence and the stock price of a publicly traded company. This investigation could lead to legal action and potential financial recoveries for investors who suffered losses as a result of the company's actions.

The details

The short seller report highlighted that Base Electron, the company with which B&W announced a $2.4 billion contract, shares a Santa Monica address with B&W shareholder B. Riley Financial, and that B. Riley's chairman Bryant Riley also serves as a director of Base Electron. The report also pointed to conflicting descriptions of Base Electron's relationship with Applied Digital, with B&W calling it a 'subsidiary' while Applied Digital has described it as an 'independent' company in which it owns 10% equity.

  • On March 12, 2025, a short seller published a report questioning the viability of B&W's $2.4 billion contract.
  • Following the short seller report, B&W's stock price fell 9.6%.

The players

Lowey Dannenberg P.C.

A national law firm representing institutional and individual investors who have suffered financial losses due to corporate fraud and malfeasance in violation of federal securities and antitrust laws.

Babcock & Wilcox Enterprises Inc. (NYSE: BW)

A publicly traded company that recently announced a $2.4 billion contract with Base Electron, which is now the subject of an investigation by Lowey Dannenberg P.C.

Base Electron

The company with which Babcock & Wilcox Enterprises announced a $2.4 billion contract, which has been called into question due to alleged conflicts of interest.

B. Riley Financial

A shareholder of Babcock & Wilcox Enterprises, whose chairman Bryant Riley also serves as a director of Base Electron, raising potential conflicts of interest.

Applied Digital

A company that has described its relationship with Base Electron as an 'independent' company in which it owns 10% equity, contradicting Babcock & Wilcox Enterprises' description of Base Electron as a 'subsidiary'.

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What they’re saying

“If you suffered a loss in the Company securities, and wish to participate, learn more, or discuss the issues surrounding the investigation, please contact our attorneys Andrea Farah at (914) 733-7256 or via email to afarah@lowey.com or Vincent R. Cappucci Jr. at (914) 733-7278 or via email at vcappucci@lowey.com.”

— Andrea Farah, Attorney, Lowey Dannenberg P.C.

“Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.”

— Vincent R. Cappucci Jr., Attorney, Lowey Dannenberg P.C.

What’s next

The judge in the case will decide on Tuesday whether or not to allow Lowey Dannenberg P.C. to proceed with the investigation into Babcock & Wilcox Enterprises.

The takeaway

This investigation highlights the importance of transparency and accountability in corporate dealings, as allegations of conflicts of interest and questionable business practices can significantly impact investor confidence and the financial performance of publicly traded companies.