INVESTOR ALERT: Glancy Binkow & Goldberg LLP Reminds Investors of the Lead Plaintiff Deadline in the Class Action Lawsuit Against KBR, Inc.
LOS ANGELES--(BUSINESS WIRE)--Glancy Binkow & Goldberg LLP reminds investors of KBR, Inc. (“KBR” or the “Company”) (NYSE:KBR) that all purchasers of KBR securities between April 25, 2013 and May 5, 2014, inclusive (the “Class Period”), have until July 8, 2014, to file a motion to be appointed as lead plaintiff in the shareholder lawsuit.
KBR operates as an engineering, construction and services company, supporting the energy, hydrocarbons, power, minerals, civil infrastructure, government services, industrial and commercial market segments. The Complaint alleges that throughout the Class Period defendants issued false and/or misleading statements and/or failed to disclose material adverse facts concerning KBR’s business, operations and prospects. Specifically, defendants misrepresented and/or failed to disclose that:
- The Company had improperly estimated costs to complete certain contracts.
- The Company’s revenue and financial results were overstated as a result of accounting errors in timing the recognition of revenues and from understating its income tax provision.
- The Company’s financial statements were not prepared in accordance with Generally Accepted Accounting Principles.
- The Company lacked adequate internal and financial controls.
- As a result of the foregoing, 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. As a result of this news, KBR shares declined $1.61, nearly 7%, to close on May 5, 2014, at $24.23 per share, on unusually heavy volume.
If you are a member of the Class described above, you may move the Court no later than July 8, 2014, to serve as lead plaintiff; however, you must meet certain legal requirements. To be a member of the Class, you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, at (646) 539-8980, or contact Gregory Linkh, Esquire, of Glancy Binkow & Goldberg LLP, 122 E. 42nd Street, Suite 2920, New York, New York 10168, at (212) 682-5340, by e-mail to firstname.lastname@example.org, or visit our website at http://www.glancylaw.com.
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