SAN FRANCISCO, Aug. 27, 2014 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP, an investor-rights law firm, advises investors of the Oct. 14, 2014, lead plaintiff deadline in the securities fraud class action against Key Energy Services, Inc. (NYSE:KEG) ("Key Energy" or "the Company"). Investors who purchased Key Energy shares between July 25, 2013 and July 17, 2014 (the "Class Period") should contact Hagens Berman Partner Reed Kathrein, who is leading the firm's investigation, by calling 510-725-3000, emailing KEG@hbsslaw.com or visiting http://hb-securities.com/investigations/KEG.
Complaints have been filed in the Texas Southern District Court, and docketed at 4:14-CV-02403 and 4:14-CV-2368. First, it is alleged that the Company failed to disclose a steep decline in its production for Petróleos Mexicanos (PEMEX), one of its largest customers. Key Energy also failed to disclose that PEMEX revenues were overstated due to fraudulent billing. This information began to leak out on January 6, 2014, when the Company revealed it was being audited by PEMEX, and as a result that it expected to take a charge of between $2 and $3 million in the fourth quarter 2013. On this news, the Company's shares declined $0.28 per share to close at $7.554 per share on January 7, 2014.
The complaints also allege that Key Energy was conducting its Russian business in violation of the Foreign Corrupt Practices Act ("FCPA") and as a result came under investigation from the SEC. The investigation came to light in a Form 10-Q released on May 6, 2014. Following this revelation, the Company's shares fell $0.54 to close at $8.40 on May 8, 2014. Finally, on July 17, 2014, Key Energy announced that it expects a second quarter loss in the range of 35 to 38 cents per in connection with the FCPA investigations. This caused another fall in Key Energy's share price. The stock fell $1.34 to close at $7.03 on July 18, 2014.
"Key Energy seems to have established a pattern of unethical business dealings. Their shareholders deserve better and should hold the Company to account," said Mr. Kathrein.
If you have suffered a loss from your investment in Key Energy securities purchased on or after July 25, 2013 and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, please contact us for your no-cost evaluation. No class has been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff.
Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in nine cities. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes can be found at www.hbsslaw.com. Read the firm's Securities Newsletter at http://www.hb-securities.com/newsletter. The firm's blog is located at www.meaningfuldisclosure.com.
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