In re KBR, Inc. Securities Litigation
Status: Ongoing Case
We prevailed on the motion for class certification in this securities class action against construction giant, KBR, Inc.
On September 5, 2014, Labaton Sucharow was appointed co-lead counsel for lead plaintiffs in the securities class action against KBR, Inc. (KBR), and certain of KBR's officers on behalf of all purchasers of KBR securities from September 11, 2013 through July 30, 2014.
On October 20, 2014, the lead plaintiffs filed a Consolidated Class Action Complaint, which alleges that the KBR defendants made false and misleading statements with respect to certain Canadian construction contracts that were accounted for as part of the company's Services business segment. Although the KBR defendants on numerous occasions touted the success of these contracts, KBR ultimately had to issue a restatement because it had failed recognize more than $150 million in pre-tax losses tied to its Canadian construction contracts. Even after the restatement, KBR continued to mislead investors about significant losses it continued to incur on these same contracts.
On September 3, 2015, the court denied the defendants' motion to dismiss in its entirety. On July 8, 2016, the court granted the plaintiffs' motion for class certification for the entire class period requested. The case proceeds with discovery.
The case is In re KBR, Inc. Securities Litigation, No. 14-cv-01287 (S.D. Tex.). The lead plaintiffs are Arkansas Public Employees Retirement System and the IBEW Local No. 58 / SMC NECA Funds. Labaton Sucharow represents the IBEW Local No. 58 / SMC NECA Funds. The defendants are KBR, Inc. and certain of KBR's officers.