Core 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][2]. 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]. - The lawsuit highlights that KBR was aware of operational issues with the HomeSafe partnership but failed to disclose this information to investors [5][6]. 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, resulting in a share price drop of over 7% [3][5]. - The contract was valued at up to $20 billion over a potential nine-year term, indicating a significant financial loss for KBR [3]. - Following the contract termination, 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]. Group 3: Company Statements - During the Q1 earnings call on May 6, 2025, KBR assured investors that the HomeSafe partnership was "strong" and "excellent," projecting a mid-point revenue contribution of about $400 million for 2025 [4][6]. - After the contract termination, KBR management acknowledged operational challenges during the Q2 earnings call on July 31, 2025 [6].

Core 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].

Core 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].