NEW YORK, Aug. 8, 2014 /PRNewswire/ -- The Law Office of James C. Kelly is investigating potential claims on behalf of investors who purchased common shares of L-3 Communications Holdings Inc. (NYSE: LLL) during the period between April 25, 2013 and July 30, 2014, concerning possible violations of federal securities laws.
A securities class action lawsuit has been filed in the United States District Court of the Southern District of New York against L-3 and certain of its officers. If you are a member of the Class, you may file a motion no later than September 30, 2014 to be appointed a lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Investors who purchased L-3 during the Class Period and suffered losses are urged to contact James C. Kelly at 888.643.7517 or firstname.lastname@example.org.
On July 31, 2014, L-3 disclosed an internal review into accounting irregularities at the Company's Aerospace Systems segment. L-3 further disclosed that the Company expects to incur an aggregate pre-tax charge of $84 million against operating income and a related reduction in net sales of approximately $43 million, including approximately $50 million related to periods prior to 2014, and approximately $34 million related to the first half of 2014. Additionally, as a result of this review, the Company has lowered its estimated operating income for the Aerospace Systems segment by approximately $35 million for the second half of 2014.
According to the Company, the adjustments primarily relate to "contract cost overruns that were inappropriately deferred and overstatements of net sales, in each case with respect to a fixed-price maintenance and logistics support contract," and are the result of "misconduct and accounting errors" at the Aerospace Systems segment, which "included concealment from L-3's Corporate staff and external auditors."