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KBR Inc. Long Term Shareholder Class Action Lawsuit 05/18/2009

 

If you are a current (long-term) investor in either KBR, Inc. (NYSE: KBR) and/or Halliburton Company (NYSE: HAL) you have certain options and you should contact the Shareholders Foundation, Inc. immediately!

You may contact us by using this form, or by sending an email to mail@shareholdersfoundation.com, or calling us at (858) 779-1554.

Company Name(s): 
KBR
Case Name: 
KBR Inc. Long Term Shareholder Class Action Lawsuit 05/18/2009
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: KBR
Lawsuit Overview
Type of Lawsuit: 
Shareholder Derivative Action
Date Filed: 
05/14/2009
Court of Filing: 
Texas State Court
Summary: 

On Thursday, May 14, 2009 An Investor in KBR, Inc. (NYSE: KBR) and Halliburton Company (NYSE: HAL) has filed a class action lawsuit on behalf of current investors in either KBR, Inc. (NYSE: KBR) and/or Halliburton Company (NYSE: HAL) and in State court on in Texas against 22 current and former board directors of Halliburton Co (HAL.N) and KBR Inc (KBR.N) including their chief executives, David Lesar of Halliburton and William Utt of KBR over alleged breaches of fiduciary duty for failing to monitor internal controls while some of the companies' employees committed crimes and paid bribes.

According to the complaint the plaintiff alleges that “Defendants' failures have caused the Companies to suffer hundreds of millions of dollars in damages, and to be exposed to substantial additional judgments in the future." The plaintiff accuses that the executives of both companies engaged in a “reign of terror” that involved among other things paying bribes in Nigeria, overcharging the U.S. government for services, accepting kickbacks. Including the largest fine ever assessed by the U.S. Commerce Department and the largest settlement ever paid by U.S. companies for violations of the Foreign Corrupt Practices Act Halliburton and KBR have paid already more than $650 million in fines, penalties, and settlements. The plaintiff concludes that “the size of the multimillion dollar bribes and the magnitude of the cover-up evidence a total lack of internal controls at Halliburton and KBR to detect fraud and wrongdoing”. A Halliburton spokeswoman said it would be inappropriate to comment because the company had not yet been served with the lawsuit. KBR also said it could not comment.

KBR, Inc. (KBR) is an engineering, construction and services company supporting the energy, petrochemicals, government services, industrial and civil infrastructure sectors. KBR, was part of Halliburton until two years ago and is located Houston, Texas. KBR Inc (KBR.N) had $8.745billion in total revenue with $302million in 2007 and $11.581billion in total revenue with $319million in net income in 2008. Shares of KBR closed on Friday at $16.99 per share, down from a 52weekHigh of $38.41 per share and $44.01 in 2007. Halliburton Company provides a variety of services and products to customers in the energy industry. Halliburton Company is also located in Houston, Texas and had $15.264billion in total revenue with $3.486billion net income in 2007 and $18.279billion in total revenue with $2.224billion net income in 2008. Shares of Halliburton Company (HAL) closed on Friday, May 15, 2009 at $21.17 per share, down from a 52weekHigh of $55.38 per share.

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