Core 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]. Summary by Sections Legal Action - The lawsuit seeks to represent investors who acquired KBR securities between May 6, 2025, and June 19, 2025, with a deadline for lead plaintiffs set for November 18, 2025 [2]. - The legal action claims that KBR executives provided an overly optimistic outlook on a crucial partnership just before its collapse [2]. Contract Cancellation - The litigation 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]. - This cancellation resulted in a more than 7% drop in KBR's share price, reflecting investor concerns over the loss of a contract potentially worth up to $20 billion over nine years [3]. Misrepresentation Allegations - On May 6, 2025, during its Q1 earnings call, KBR assured investors that the HomeSafe partnership was "strong" and projected a revenue contribution of approximately $400 million for 2025 [4]. - However, on June 19, 2025, HomeSafe revealed that TRANSCOM had terminated the contract due to operational issues, which KBR allegedly knew about but did not disclose to investors [5]. Financial Impact - Following the contract termination, KBR revised its low-end 2025 revenue guidance downward by about $900 million, a decrease of 9%, primarily due to the removal of the HomeSafe JV revenue contribution [5]. - KBR management acknowledged operational challenges during the Q2 2025 earnings call, indicating a shift in the company's financial outlook [5].