Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit
against Key Energy Services, Inc.
Oklahoma City, OK (August 20, 2014) – On August 15, 2014, a securities class action lawsuit was filed in the United States District Court for the Southern District of Texas against Key Energy Services, Inc. (NYSE: KEG). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is July 25, 2013 through July 17, 2014. This litigation was filed because on July 17, 2014, Key Energy Services, Inc. ("Key Energy" or the "Company") announced it expected to report a second quarter 2014 loss in the range of $0.35 to $0.38 per share, and will record a $30-$35 million pre-tax charge for goodwill and other asset impairments related to the Company's operations in Russia. Key Energy 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. Once this information was disclosed, Key Energy shares dropped more than 16 percent below the previous day's closing price, or $1.34 per share.
The Complaint therefore contains allegations that the defendants misrepresented or failed to disclose material facts concerning Key Energy’s operations and financial performance. Specifically, that defendants misrepresented or failed to disclose that: (1) the Company's production for Petroleos Mexicanos (PEMEX), one of its largest customers, was in decline; (2) the Company had engaged in improper conduct related to its Russia operations, and that business practices in Russia were in violation of the Foreign Corrupt Practices Act.
Plaintiff seeks to recover damages on behalf of all Key Energy Services, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Tuesday, October 14, 2014 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to firstname.lastname@example.org, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Lynn.
Posted on Wed, August 20, 2014
by K. Lynn Nunn