NEW YORK, Aug. 26, 2014 (GLOBE NEWSWIRE) -- Morgan & Morgan announces that a shareholder class action has been filed in the United States District Court, Southern District of New York against L-3 Communications Holdings, Inc. ("L-3 Communications" or "the Company") (NYSE:LLL) on behalf of purchasers of the Company's securities between April 25, 2013 and July 30, 2014 ("the Class Period").
If you purchased L-3 Communications securities during the Class Period, you may, no later than September 30, 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, the defendants made a series of materially false and misleading statements about the Company's accounting and financial position. Specifically, the Complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose that: (1) L-3 Communications' financial statements contained errors related to the improper deferral of cost overruns on a fixed-price maintenance and logistics support contract resulting in overstatement of operating income; (2) net sales with respect to the fixed-price maintenance and logistics support contract were overstated; (3) the Company lacked adequate internal controls over financial reporting; and (4) as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.
On July 31, 2014, L-3 Communications reported preliminary second quarter 2014 financial results. Therein, the Company noted that the results were "preliminary because the Company is currently conducting an internal review that could result in increases to the preliminary adjustments included in this release." L-3 Communications also disclosed that, as a result of the ongoing accounting review, it expected to incur a charge of $84 million "against operating income and a related reduction in net sales of approximately $43 million." Additionally, the Company disclosed that it believed that "the amounts associated with these adjustments are the result of misconduct and accounting errors at the Aerospace Systems segment," and that it had terminated a number of employees in the Aerospace Segment.
Following this news, shares of L-3 Communications fell $14.68 per share, or more than 12 percent, to close at $104.96 on July 31, 2014.
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