KBR(US:KBR) Globenewswire·2025-11-05 15:23Core 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][3]. 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 the HomeSafe partnership just before its collapse [2][5]. 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, leading to a more than 7% drop in KBR's share price [3][5]. - The contract was valued at up to $20 billion over a potential nine-year term [3]. Group 3: Financial Implications - KBR had previously assured investors during its Q1 earnings call on May 6, 2025, that the HomeSafe partnership was "strong" and expected to contribute approximately $400 million in revenue for 2025 [4]. - Following the contract termination, KBR revised its low-end 2025 revenue guidance downward by about $900 million (-9%) due to the removal of the HomeSafe JV revenue contribution [6].