INVESTOR ALERT: Class Action Lawsuit Against Key Energy Services, Inc. Announced by Law Offices of Howard G. Smith
August 25 2014 - 10:32AM
Business Wire
Law Offices of Howard G. Smith announces that a class action
lawsuit has been filed in the United States District Court for the
Southern District of Texas on behalf of purchasers of the
securities of Key Energy Services, Inc. (“Key Energy” or the
“Company”) (NYSE:KEG) between July 25, 2013 and July 17, 2014,
inclusive (the “Class Period”).
Key Energy operates as an onshore well servicing contractor
offering rig-based services and specialty drilling services to oil
and natural gas producers in the United States and internationally.
The Complaint alleges that defendants misrepresented or failed to
disclose material facts concerning the Company’s operations and
financial performance. Specifically, defendants misrepresented or
failed to disclose that:
- The Company’s production for Petroleos
Mexicanos (PEMEX), one of its largest customers, was in
decline.
- The Company engaged in improper conduct
related to its Russia operations, and its business practices in
Russia were in violation of the Foreign Corrupt Practices Act.
On July 17, 2014, Key Energy announced an anticipated second
quarter 2014 loss in the range of $0.35 to $0.38 per share, and a
$30-$35 million pre-tax charge for goodwill and other asset
impairments related to the Company’s operations in Russia. The
Company also reported that pre-tax expenses of approximately $5
million were incurred in connection with Foreign Corrupt Practices
Act investigations disclosed in a previous regulatory filing.
Following this news, Key Energy shares dropped more than 16%, or
$1.34 per share, on July 18, 2014, on unusually heavy volume.
If you are a member of the Class described above, you have until
October 14, 2014, to move the Court to serve as lead plaintiff, if
you 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 if you have
any questions concerning this announcement or your rights or
interests with respect to these matters, please contact Howard G.
Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol
Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215)
638-4847, Toll Free at (888) 638-4847, or by email to
howardsmith@howardsmithlaw.com, or visit our website at
http://www.howardsmithlaw.com.
Law Offices of Howard G. SmithHoward G. Smith,
Esquire215-638-4847888-638-4847howardsmith@howardsmithlaw.comwww.howardsmithlaw.com