DNOW Inc. Faces Investor Lawsuit Over Alleged Omission of ERP Failures in MRC Global Acquisition

National shareholder rights law firm Hagens Berman is investigating DNOW Inc. (NYSE: DNOW) in connection with a securities class action lawsuit. The suit alleges that DNOW violated federal securities laws by failing to disclose material information regarding enterprise resource planning (ERP) system integration failures following its acquisition of MRC Global Inc.

The lawsuit claims that the merger proxy materials provided to investors were misleading. Specifically, it alleges that DNOW downplayed the challenges associated with integrating MRC Global's new ERP system into its operations. Shareholders who held DNOW stock as of the August 5, 2025 record date and were eligible to vote on the merger are encouraged to contact the firm.

In November 2025, prior to the merger's closing, DNOW management reportedly assured investors that MRC Global's ERP system was "state-of-the-art" and would improve efficiency, while minimizing integration risks. However, in February 2026, DNOW reported that MRC's revenues had sharply declined due to "persistent ERP challenges." The company admitted that the software implementation had been an "obstacle" and that design flaws caused operational slowdowns and necessitated significant unexpected capital expenditures.

These disclosures led to substantial operational disruptions and customer service issues, forcing DNOW to delay its financial guidance for 2026. Following the February 2026 announcement, DNOW's stock price dropped 19% in a single trading session. Hagens Berman partner Reed Kathrein stated that the investigation will determine if the proxy materials deliberately downplayed these ERP integration failures to facilitate the deal.

Investors who sustained significant losses in DNOW stock are urged to contact Hagens Berman to learn about their options. The deadline for investors to seek lead plaintiff status in the class action is October 2, 2026.