(Updated with stock price.)

NEW YORK (

TheStreet

) --

KB Home

(KBH) - Get Report

is at the center of a Securities and Exchange investigation.

The SEC is investigating the homebuilder for possible accounting and disclosure violations, according to a filing released on Friday.

The news sent shares of the company tumbling 5.8% to $15.51 in morning trading.

KB Home said in the filing that it is cooperating with the investigation, but does not believe it will result in any liabilities or costs that would negatively affect profits or its financial position.

"We anticipate reporting lower year-over-year revenues and homes delivered in the 2009 fourth quarter, but improved year-over-year bottom-line results," the company said.

This is not the first time KB Home has been investigated by the SEC. In 2008, former chairman and CEO Bruce Karatz paid nearly $7.2 million to settle SEC charges of backdating stock options. The SEC had alleged that Karatz engaged in backdating practices from at least 1999 through 2005, resulting in a gain of more than $6 million. Karatz did not admit or deny the allegations.

And in May, homeowners brought a federal racketeering lawsuit against the company, alleging it was working with both

Countrywide Financial

and appraiser

LandSafe

to fraudulently inflate sales prices of homes in Arizona and Nevada.

In the announcement of the investigation, the company added that it expects market conditions for the sector will not change significantly through the remainder of the year. In the third quarter, KB Home narrowed its loss and saw new-home orders surge 62%. But results still missed Wall Street's expectations.

-- Reported by Jeanine Poggi in New York

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