NEW YORK, May 14, 2014 (GLOBE NEWSWIRE) -- Morgan & Morgan announces that a class action has been filed in the United States District Court for the Southern District of Texas on behalf of all purchasers of KBR, Inc. securities ("KBR" or "Company") (NYSE:KBR) between April 25, 2013 and May 5, 2014 ("Class Period").
If you purchased KBR during the Class Period, you may, no later than July 8, 2014, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The Complaint alleges that throughout the Class Period defendants misrepresented and/or failed to disclose that the Company had improperly estimated costs to complete certain contracts, overstated revenue and financial results as a result of accounting errors in timing the recognition of revenues, released financial statements that were not prepared in accordance with Generally Accepted Accounting Principles, and lacked adequate internal and financial controls. As a result, the Company's financial statements were materially false and misleading at all relevant times.
On May 5, 2014, KBR announced that the Audit Committee of the Company's Board of Directors concluded that KBR's previously issued consolidated financial statements for the year ended December 31, 2013, should no longer be relied upon and should be restated. KBR determined that the estimated costs to complete seven Canadian pipe fabrication and module assembly contracts that were awarded during 2012-2013 will result in pre-tax charges of more than $150 million, including the reversal of more than $20 million in previously recognized pre-tax profits. The Company further announced that it intends to restate its consolidated financial statement for fiscal 2013, and will postpone filing its Form 10-Q for the period ended March 31, 2014, until after the amended Form 10-K for 2013 is complete. Following this news, KBR shares declined $1.61, nearly 7%, to close on May 5, 2014 at $24.23 per share, on unusually heavy volume.
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