Halliburton Shares Plunge on Verdict

Shares of Halliburton Co. lost more than 40% after the oilfield-services company revealed that a jury ruled against it in an asbestos-related lawsuit.

A six-member state court jury in Baltimore found a former subsidiary of Halliburton’s Dresser Industries unit and other companies responsible for the asbestos exposure of five people and awarded them $40 million.

Halliburton said its portion of the verdict against Dresser, which Halliburton acquired in 1998, totaled $30 million.

Analysts at Salomon Smith Barney and UBS Warburg reduced their ratings on Halliburton stock, citing about $150 million in verdicts and judgments against Halliburton in the last two months.

The Baltimore verdict came Wednesday after a trial that lasted several weeks, but news of Halliburton’s liability reached most investors only after the Dallas-based company notified the Securities and Exchange Commission on Friday.

Halliburton’s shares tumbled $8.85, or 43%, to close at $12 on the New York Stock Exchange.