Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses In Excess Of $100,000 Investing In Key Energy Services Inc. (KEG) To Contact The Firm
Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Key Energy Services Inc. (“Key Energy” or the “Company”) (NYSE: KEG) of the October 14, 2014 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against Key Energy and certain executives.
A complaint has been filed in the Southern District of Texas on behalf of all persons who purchased Key Energy securities between July 25, 2013 and July 17, 2014, inclusive (the “Class Period”).
The complaint alleges that the Company and its executives violated federal securities laws with respect to its disclosures concerning its business, operations, and prospects.
Specifically, the action alleges that during the Class Period, Key Energy made false and/or misleading statements and/or failed to disclose that: (i) the Company had overstated revenues from its largest customer, Petroleos Mexicanos (“Pemex”), due to fraudulent overbilling; (ii) Key Energy’s production from Pemex was declining; (iii) certain business activities of the Company in its Russian operations violated the Foreign Corrupt Practices Act (“FCPA”); and (iv) Key Energy overstated goodwill and other assets related to the Company’s Russian operations.
On July 17, 2014, the Company disclosed 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 had been incurred in relation with the FCPA investigations.
Following this news, the price of Key Energy stock declined by $1.34, or over 16%, to close at $7.03 on July 18, 2014.
If you invested in Key Energy stock or options between July 25, 2013 and July 17, 2014 and would like to discuss your legal rights, you can contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding Key Energy’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330
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