NEW YORK, May 12, 2014 /PRNewswire/ -- Wolf Popper LLP is investigating potential claims on behalf of purchasers of KBR, Inc. common stock ("KBR") (NYSE: KBR) during the period between April 26, 2013 and May 2, 2014, concerning possible violations of federal securities laws. Such investors are advised to contact Fei-Lu Qian at 877.370.7703 or firstname.lastname@example.org.
On May 5, 2014, KBR disclosed that its financial statements for the year ended December 31, 2013, will need to be restated, and should no longer be relied upon due to errors with respect to, among other things, the reversal of previously recognized pre-tax profits and the recognition of pre-tax estimated losses on certain Canadian pipe fabrication and module assembly contracts that were awarded during 2012-2013.
Specifically, KBR determined that the estimated costs to complete the contracts will result in pre-tax charges of more than $150 million, including the reversal of $23 million in previously recognized pre-tax profits and the recognition of approximately $135 million in pre-tax estimated losses at completion. Further, KBR also admitted to improper recognition of revenue of approximately $9 million pre-tax and an error resulting in the understatement of its income tax provision of approximately $6.5 million.
On this news, KBR common stock declined $1.61 per share or more than 6%, to close at $24.23 per share on May 5, 2014.Wolf Popper LLP has extensive experience representing shareholders in securities class actions and has successfully recovered billions of dollars for defrauded investors. The reputation and expertise of the firm in shareholder and other class action litigation has been repeatedly recognized by the courts, which have appointed the firm to major positions in complex multi-district and consolidated litigations. See www.wolfpopper.com Attorney Advertising: Prior Results Do Not Guarantee A Similar Outcome.