NEW YORK, Aug. 28, 2014 (GLOBE NEWSWIRE) -- Morgan & Morgan announces that class action lawsuits have been commenced in the United States District Court for the Southern District of Texas on behalf of purchasers of Key Energy Services, Inc. ("Key Energy" or the "Company") (NYSE:KEG) securities between July 25, 2013 through July 17, 2014, inclusive (the "Class Period").
The class actions allege that the Company and certain of its officers and/or directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
If you purchased Key Energy stock during the Class Period, you may, no later than October 14, 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 complaints allege that on January 6, 2014, after the market closed, Key Energy revealed that Mexico State-owned oil giant Petroleos Mexicanos ("PEMEX"), one of Key Energy's largest customers, was conducting an audit of the Company's aggregate billings of $372 million under its contracts with PEMEX. The Company announced that as a result, it expected to take a charge of $2 million to $3 million in the fourth quarter of 2013. Following this news, Key Energy's stock declined $0.28 per share, or nearly 4%, on January 7, 2014.
The complaints also allege that on May 6, 2014, Key Energy announced in its Form 10-Q filed with the SEC that the Company was being investigated for possible violations of the U.S. Foreign Corrupt Practices Act ("FCPA") involving its operations in Russia. Following this news, Key Energy's stock declined $0.52 per share, or a two-day decline of nearly 6%, on May 8, 2014.
Additionally, on July 17, 2014, after the market closed, Key Energy revealed that it expected to report a second quarter loss in the range of $0.35 to $0.38 per share in connection with the FCPA investigations. This adverse news caused Key Energy's stock to fall $1.34 per share, or over 16%, to close at $7.03 per share on July 18, 2014.
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