NEW YORK, May 23, 2014 (GLOBE NEWSWIRE) -- Pomerantz LLP has filed a class action lawsuit against KBR, Inc. ("KBR" or the "Company") (NYSE:KBR) and certain of its officers. The class action, filed in United States District Court, District of Texas, and docketed under 4:14-cv-01453, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired KBR securities between April 25, 2013 and May 5, 2014, both dates inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased KBR securities during the Class Period, you have until July 8, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at email@example.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
KBR is a global engineering, construction and services company supporting the energy, hydrocarbons, power, minerals, civil infrastructure, government services, industrial, and commercial market segments. KBR offers services through its Gas Monetization, Hydrocarbons, Infrastructure, Government and Power ("IGP"), Services and Other business segments.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company had improperly estimated costs to complete certain contracts; (2) the Company had improperly recognized revenues; (3) as a result, the Company's revenue and financial results were overstated; (4) as such, the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (5) the Company lacked adequate internal and financial controls; and (6) as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.
On May 5, 2014, the Company issued a press release and filed a Current Report with the SEC on Form 8-K announcing that the Audit Committee of the Company's Board of Directors had determined that the Company's financial statements filed with the SEC on Form 10-K for the fiscal year ended December 31, 2013 should no longer be relied upon. According to the Company, the material financial statement errors were primarily attributable to how the Company estimated costs to complete seven of its contracts, which resulted in pre-tax charges in excess of $150 million and the reversal of over $20 million in previously recognized profits. In addition, the Company identified an overstatement error in its revenue recognition on a long-term construction project of approximately $9.0 million pre-tax, and an understatement of its income tax provision of approximately $6.5 million. 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 ending March 31, 2014 until after the amended Form 10-K is complete.
On this news, shares of KBR declined $1.61 per share, or nearly 7%, to close on May 5, 2014, at $24.23 per share, on unusually heavy volume.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT: Robert S. Willoughby Pomerantz LLP firstname.lastname@example.orgSource:Pomerantz LLP