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