NEW YORK, July 18, 2014 /PRNewswire/ -- Pomerantz LLP
is investigating claims on behalf of investors of Key Energy
Services, Inc. ("Key Energy" or the "Company")(NYSE: KEG).
Such investors are advised to contact Robert S. Willoughby at rswilloughby@pomlaw.com
or 1-888-476-6529, ext. 237.
The investigation concerns whether Key Energy and certain of its
officers and/or directors have violated Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934.
On January 6, 2014, the Company
disclosed in a press release that Mexico State-owned oil giant
Petroleos Mexicanos, or "PEMEX", one of Key Energy's largest
customers, is conducting an audit of the Company's aggregate
billings of $372 million under its
contracts with PEMEX. As a result, the Company said it expected to
take a charge of between $2 million and $3
million in the fourth quarter 2013.
On this news, shares of Key Energy fell $0.28 per share to $7.55, or more than 3.57%, on January 7, 2014 in intraday trading.
On May 6, 2014, the Company
announced in their recent Form 10-Q filing, that "[t]he U.S.
Securities and Exchange Commission has advised us that it is
investigating possible violations of the U.S. Foreign Corrupt
Practices Act involving business activities of Key's operations in
Russia."
On this news, shares of Key Energy fell $0.65 per share to $8.40, or more than 7.18%, from May 6, 2014 to May 8,
2014.
On July 17, 2014, the Company
disclosed in a press release that it expects to report a second
quarter loss in the range of 35 to 38
cents per share. KEG announced that it will record a
$30 million to $35 million pre-tax
charge for goodwill and other assets impairments related to its
operations in Russia. Also, pre-tax expenses of $5 million were incurred in connection with the
Foreign Corrupt Practices Act investigations.
On this news, shares of Key Energy fell $1.33 per share to $7.40, or more than 15.89%, from July 18, 2014.
The Pomerantz Firm, with offices in New York, Chicago, San
Diego and Florida, is
acknowledged as one of the premier firms in the areas of corporate,
securities, and antitrust class litigation. Founded by the late
Abraham L. Pomerantz, known as the
dean of the class action bar, the Pomerantz Firm pioneered the
field of securities class actions. Today, more than 70 years later,
the Pomerantz Firm continues in the tradition he established,
fighting for the rights of the victims of securities fraud,
breaches of fiduciary duty, and corporate misconduct. The Firm has
recovered numerous multimillion-dollar damages awards on behalf of
class members. See www.pomerantzlaw.com.
CONTACT:
Robert S.
Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
SOURCE Pomerantz LLP