NEW YORK, May 19, 2014 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a class action lawsuit has been filed in the United States District Court for the Southern District of Texas on behalf of all purchasers of the securities of KBR Inc., ("KBR" or the "Company") (NYSE:KBR) within the class period of April 25, 2013 through May 5, 2014.
The filed action alleges that the defendants misrepresented and/or failed to disclose that: (1) the Company had improperly estimated costs to complete certain contracts; (2) the Company's revenue and financial results overstated as a result of accounting errors in the recognition of revenues and from understating its income tax provision; (3) the Company's financial statements and accounting practices were not GAAP-compliant; and (4) the Company's financial statements were material false and misleading at all relevant times.
On May 5, 2014, KBR announced that the Audit Committee of the Board of Directors concluded that the Company's consolidated financial statements for the year ended December 31, 2013, could no longer be relied upon and would have to be restated. The Company's Audit Committee 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.
As a result, the Company further announced that it would be restating its consolidated financial statements for 2013 and will postpone filing its Form 10-Q for the period ended March 31, 2014, until after its amended Form 10-K for the 2013 is completed. On this news, KBR shares declined $1.61, down nearly 7%, to close at $24.23 per share on May 5, 2014.
If you purchased KBR securities during the Class Period you may, no later then July 8, 2014, request that the Court appoint you lead plaintiff. If you are a shareholder of KBR, who suffered a material loss on your shares and would like additional information concerning your rights in this matter, please contact us immediately:
Benjamin Y. Kaufman, Esquire
Gregory Stone, Director of Case and Financial Analysis
Wolf Haldenstein Adler Freeman & Herz LLP
270 Madison Avenue
New York, New York 10016
Wolf Haldenstein Adler Freeman & Herz LLP did not file the original complaint against KBR Inc.
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