Law Offices of Howard G. Smith announces that a class action lawsuit has been filed in the United States District Court for the Southern District of Texas on behalf of purchasers of the securities of Key Energy Services, Inc. (“Key Energy” or the “Company”) (NYSE:KEG) between July 25, 2013 and July 17, 2014, inclusive (the “Class Period”).
Key Energy operates as an onshore well servicing contractor offering rig-based services and specialty drilling services to oil and natural gas producers in the United States and internationally. The Complaint alleges that defendants misrepresented or failed to disclose material facts concerning the Company’s operations and financial performance. Specifically, defendants misrepresented or failed to disclose that:
- The Company’s production for Petroleos Mexicanos (PEMEX), one of its largest customers, was in decline.
- The Company engaged in improper conduct related to its Russia operations, and its business practices in Russia were in violation of the Foreign Corrupt Practices Act.
On July 17, 2014, Key Energy announced an anticipated second quarter 2014 loss in the range of $0.35 to $0.38 per share, and a $30-$35 million pre-tax charge for goodwill and other asset impairments related to the Company’s operations in Russia. The Company 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. Following this news, Key Energy shares dropped more than 16%, or $1.34 per share, on July 18, 2014, on unusually heavy volume.
If you are a member of the Class described above, you have until October 14, 2014, to move the Court to serve as lead plaintiff, if you meet certain legal requirements. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to
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