NEW YORK, Sept. 19, 2014 /PRNewswire/ -- Pomerantz LLP has
filed a class action lawsuit against Key Energy Services,
Inc. ("Key Energy" or the "Company")(NYSE: KEG) and certain of
its officers. The class action, filed in United States
District Court, Southern District of Texas, and docketed under 14-cv-02403, is on
behalf of a class consisting of all persons or entities who
purchased Key Energy securities between July
25, 2013 and July 17, 2014,
inclusive (the "Class Period"). This class action seeks to
recover damages against Defendants for alleged violations of the
federal securities laws under the Securities Exchange Act of 1934
(the "Exchange Act").
If you are a shareholder who purchased Key Energy securities
during the Class Period, you have until October 14, 2014 to ask the Court to appoint you
as Lead Plaintiff for the class. A copy of the Complaint can
be obtained at www.pomerantzlaw.com. To discuss this action,
contact Robert S. Willoughby at
rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll
free, x237. Those who inquire by e-mail are encouraged to include
their mailing address, telephone number, and number of shares
purchased.
Key Energy Services, Inc., its wholly owned subsidiaries and its
controlled subsidiaries provide a full range of well services to
major oil companies, foreign national oil companies and independent
oil and natural gas production companies.
The Complaint alleges that throughout the Class Period,
Defendants made false and/or misleading statements, as well as
failed to disclose material adverse facts about the Company's
business, operations, and prospects. Specifically, Defendants made
false and/or misleading statements and/or failed to disclose that:
(1) revenues from its largest customer, Pemex (defined below), were
overstated due to fraudulent overbilling; (2) the Company's
production from Pemex was in decline; (3) the Company conducted
certain business activities in its Russian operations in violation
of the Foreign Corrupt Practices Act ("FCPA"); (4) goodwill and
other assets related to the Company's Russian operations were
overstated; and (5) as a result of the foregoing, the Company's
financial statements were materially false and misleading at all
relevant times.
On January 6, 2014, the Company
disclosed that it was being audited by Petroleos Mexicanos
("Pemex"), a customer with aggregate billings of $372 million under contract. As a result, the
Company disclosed that it expected to take a charge of between
$2 million and $3 million in the
fourth quarter 2013. On this news, Key Energy Services
securities declined $0.28 per share
or nearly 3.6%, to close at $7.554
per share on January 7, 2014.
In a May 6, 2014 Form 10-Q, Key Energy Services disclosed
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, the Company's shares fell $0.54, or more than 6%, to close at $8.40 on May 8,
2014 on heavy trading volume.
On July 17, 2014, the Company
announced that it expects to report a second quarter loss in the
range of 35 cents to 38 cents per
share based on a $30 million to $35
million pre-tax charge for goodwill and other asset
impairments related to its operations in Russia, and that
pre-tax expenses of $5 million were
incurred in connection with the Foreign Corrupt Practices Act
investigations. On this news, the Company's shares fell
$1.34, or more than 16%, to close at
$7.03 on July
18, 2014 on heavy trading volume.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San
Diego, 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