KBR(US:KBR) Globenewswire·2025-10-31 18:43Core Viewpoint - A class-action lawsuit has been filed against KBR, Inc. alleging misleading statements to investors prior to the cancellation of a significant military contract, which adversely affected the company's business outlook [1][5]. Group 1: Lawsuit Details - The lawsuit seeks to represent investors who acquired KBR securities between May 6, 2025, and June 19, 2025 [1][2]. - The legal action claims that KBR executives provided an overly optimistic outlook on a crucial partnership just before its collapse [2][5]. Group 2: Contract Cancellation Impact - The lawsuit is linked to the Department of Defense's cancellation of a 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][5]. 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 due to operational issues, which KBR allegedly knew about but did not disclose to investors [5]. Group 4: Financial Revisions - After the class period, KBR revised its low-end 2025 revenue guidance downward by approximately $900 million (-9%) due to the removal of the HomeSafe JV revenue contribution [6]. - KBR management acknowledged operational challenges during the Q2 2025 earnings call, raising questions about whether the company misled investors regarding the contract's status [6].