SAN DIEGO and HOUSTON, Aug. 19, 2014 (GLOBE NEWSWIRE) -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of Key Energy Services, Inc. (NYSE:KEG) has filed a federal securities fraud class action complaint in the U.S. District Court for the Southern District of Texas, Houston Division. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between July 25, 2013 and July 17, 2014 (the "Class Period"). Key Energy operates as an onshore rig-based well servicing contractor in the United States and internationally.
Key Energy Is Accused of Violating the Foreign Corrupt Practices Act
According to the complaint, shares of Key Energy fell multiple times, beginning with a decline of nearly 4%, or $0.28 per share, on January 7, 2014, following an announcement that one of Key Energy's largest customers, Petroleos Mexicanos, was conducting an audit of Key Energy's aggregate billings under their contract. Shortly thereafter, following the May 6, 2014, announcement that the company was being investigated for possible violations of the U.S. Foreign Corrupt Practices Act, Key Energy stock dropped an additional $0.52 per share, for a two day decline of nearly 6%, on May 8, 2014. Finally, Key Energy stock fell an additional 16%, or $1.34 per share, to close at $7.03 per share on July 18, 2014, following the company's July 17, 2014 disclosure that it expected to: (i) report a second quarter loss between $0.35 to $0.38 per share; (ii) record a $30 million to $35 million pre-tax charge for goodwill and other assets impairments related to its operations in Russia; and (iii) that the company incurred pre-tax expenses of $5 million in connection with the FCPA investigations.
The complaint further alleges that Key Energy made false and/or misleading statements and/or failed to disclose that: (i) the company's production for Petroleos Mexicanos was in decline; (ii) it engaged in improper conduct related to its operations in Russia; and (iii) its business practices in Russia were in violation of the FCPA.
Key Energy Investors Are Encouraged to Contact Shareholder Rights Law Firm Robbins Arroyo LLP
If you invested in Key Energy and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the information form on the firm's shareholder rights blog: www.robbinsarroyo.com/shareholders-rights-blog/key-energy-services-inc
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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