KBR, Inc. (KBR) Shares Sharply Declined Amid TRANSCOM Contract Termination– Hagens Berman

Core Viewpoint - KBR, Inc. experienced a significant decline in share price following the cancellation of a major contract with the U.S. Department of Defense, raising concerns about potential misrepresentation of the contract's status to investors [1][4][5]. Group 1: Contract Details - KBR's joint venture, HomeSafe Alliance LLC, was awarded a contract valued at $20 billion with a potential term of 9 years to manage household goods for the U.S. Armed Services and Department of Defense [3]. - The contract was terminated by TRANSCOM due to HomeSafe's failure to meet obligations, which included issues like delays and damaged items [4][5]. Group 2: Investor Reactions and Investigations - Following the contract cancellation announcement, KBR's share price fell by $3.85, or 7.3%, on June 20, 2025 [5]. - Hagens Berman, a national shareholders rights firm, has initiated an investigation into KBR for possible violations of securities laws related to prior positive statements about the contract [2][5]. Group 3: Company Assurances - As recently as May 6, 2025, KBR management expressed confidence in the contract's status, claiming a strong relationship with TRANSCOM [4][7]. - However, just weeks later, it was revealed that HomeSafe had been struggling with various challenges related to the contract, contradicting KBR's earlier assurances [5].