KBR(US:KBR) Globenewswire·2025-09-23 20:31Core Viewpoint - A class-action lawsuit has been filed against KBR, Inc. for allegedly misleading investors prior to the cancellation of a significant military contract, resulting in a substantial drop in the company's stock price [1][3]. Group 1: Lawsuit Details - The lawsuit, Norrman v. KBR, Inc., claims that KBR executives provided a falsely optimistic outlook on the HomeSafe partnership, which was on the verge of collapse [2][4]. - The class period for the lawsuit is defined as May 6, 2025, to June 19, 2025, with a lead plaintiff deadline set for November 18, 2025 [2]. Group 2: Contract Cancellation Impact - The Department of Defense's U.S. Transportation Command (TRANSCOM) canceled its global household goods contract with HomeSafe Alliance LLC, a joint venture led by KBR, which was valued at up to $20 billion over a potential nine-year term [3][4]. - Following the contract termination announcement on June 20, 2025, KBR's shares fell over 7% as investors reacted to the loss [3]. Group 3: Allegations of Misrepresentation - During a Q1 earnings call on May 6, 2025, KBR assured investors that the HomeSafe partnership was "strong" and "excellent," despite being aware of TRANSCOM's material concerns regarding operational issues [4]. - The lawsuit alleges that KBR's misrepresentation of the partnership's status led to significant financial losses for shareholders [4][5].