SAN FRANCISCO--(BUSINESS WIRE)--Hagens Berman Sobol Shapiro LLP, an investor-rights law firm, is investigating alleged accounting inaccuracies and potential harm to investors of L-3 Communications Holdings Inc. (NYSE: LLL) (“L-3” or “the Company”) and welcomes persons with knowledge of the irregularities as well as investors who purchased L-3 stock and who have sustained significant losses to contact Hagens Berman Partner Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000, emailing L3@hbsslaw.com or visiting http://hb-securities.com/investigations/L3.
According to news published by Wall Street Journal affiliate MarketWatch, on July 31, 2014, L-3 disclosed “accounting irregularities” linked to aerospace and defense contracts running from 2010 to January 2015. The article said the project “overstates sales and cost overruns and alleged ‘misconduct [that] included concealment from L-3’s corporate staff and external auditors.’”
In response, L-3 stated that accounting problems were detected internally and would entail a review of the company’s entire aerospace segment, adding that the problems were isolated.
“We understand L-3 is claiming that the fraud is isolated, but we invite persons with actual knowledge of what was known by senior management to contact us,” said Mr. Kathrein. “Our firm intends to find out exactly what L-3 management knew, and encourages individuals to contact our offices with any information that may help us determine whether a securities fraud class action is appropriate.”
Upon the publishing of the MarketWatch news story, L-3 shares dropped roughly 15 percent on July 31, 2014 from $119.62 per share to $100.29 per share. As of mid-day July 31, 2014, the stock was trading around $101 per share.
Persons with non-public information regarding L-3 should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email L3@hbsslaw.com.
Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in nine cities. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes can be found at www.hb-securities.com. Read the firm’s Securities Newsletter at http://www.hb-securities.com/newsletter. The firm’s blog is located at www.meaningfuldisclosure.com.