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