KBR(US:KBR) Prnewswire·2025-10-30 12:47Core Viewpoint - A class-action lawsuit has been filed against KBR, Inc. alleging misleading statements made by the company prior to the cancellation of a significant military contract, which adversely affected its business outlook [1][2]. Group 1: Lawsuit Details - The lawsuit targets KBR investors who acquired securities between May 6, 2025, and June 19, 2025, and seeks to represent those who suffered substantial losses [2]. - The legal action claims that KBR executives provided an overly optimistic outlook on a crucial partnership just before its collapse [2]. Group 2: Contract Cancellation Impact - The lawsuit arises from the U.S. Department of Defense's cancellation of its global household goods contract with HomeSafe Alliance LLC, a joint venture led by KBR, announced on June 20, 2025 [3]. - Following the contract termination, KBR shares dropped over 7% due to the loss of a contract valued at up to $20 billion over a potential nine-year term [3]. Group 3: Misrepresentation Allegations - On May 6, 2025, during its Q1 earnings call, KBR assured investors that the HomeSafe partnership was "strong" and projected a mid-point revenue contribution of about $400 million for 2025 [4]. - Just weeks later, on June 19, 2025, HomeSafe disclosed the termination of the contract for cause, attributed to operational issues, which KBR allegedly knew about but did not disclose to investors [5]. Group 4: Financial Revisions - After the contract termination, KBR revised its low-end 2025 revenue guidance downward by approximately $900 million (-9%) during its Q2 2025 financial results announcement on July 31, 2025 [6]. - KBR management acknowledged operational challenges during the earnings call, raising questions about whether the company intentionally misled investors regarding the contract's status [6].