| Company: | Key Energy Services, Inc. |
| Ticker Symbol: | NYSE: KEG |
| Class Period: | April 29, 2003 to June 4, 2004 |
| Date Filed: | Jun-10-04 |
| Lead Plaintiff Deadline: | Aug-10-04 |
| Court: | Western District, TX |
| Allegations: |
A class action lawsuit was filed on June 10, 2004 on behalf of purchasers of the securities of Key Energy Services, Inc. ("Key" or the "Company") (NYSE: KEG) between April 29, 2003 and June 4, 2004, inclusive, (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act").
The action, numbered EP04-CA-0227, is pending in the United States District Court for the Western District of Texas against defendants Key and Key directors and/or officers Richard J. Alario, James J. Byerlotzer, Francis D. John and Royce Mitchell.
The complaint alleges that during the Class Period, defendants' publicly disseminated results of Key's operations and financial condition contained artificially inflated revenues, assets and income. Such results were not prepared or reported in accordance with Generally Accepted Accounting Principles and deceived investors as to the Company's true performance, thereby artificially inflating the price of Key securities during the Class Period. The truth began to emerge on March 15, 2004. On that date, the Company announced that that it would not meet the Securities and Exchange Commission deadline for filing its annual report because it had yet to complete its review of "certain idle equipment" with a book value of $55 million, and that the review might result in "a revision to the 2003 earnings." The Company maintained, however, that, "the underlying fundamentals of the Company are strong and the outlook remains positive." The next two months were punctuated by a series of additional disclosures, each of which further depressed Key's stock price. The Class period ends on June 4, 2004. The morning of the next trading day, June 7, 2004, before the market opened, defendants announced that they were "withdrawing all previous earnings forecasts of operating results for 2004," that they were doing so "in light of current uncertainties affecting the Company," and that they had received notice from the indenture trustee of its 6.375% and 8.375% senior Notes that the Company was in default and had 90 days to cure the default. On this news, the price of Key shares plummeted on extremely high trading volume of 13,963,900 shares. Key shares had closed at $9.62 on June 4, 2004. On June 7, 2004 they reached an intra-day low of $7.00, down 27%, before rebounding to close the day at $8.67.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
The action, numbered EP04-CA-0227, is pending in the United States District Court for the Western District of Texas against defendants Key and Key directors and/or officers Richard J. Alario, James J. Byerlotzer, Francis D. John and Royce Mitchell.
The complaint alleges that during the Class Period, defendants' publicly disseminated results of Key's operations and financial condition contained artificially inflated revenues, assets and income. Such results were not prepared or reported in accordance with Generally Accepted Accounting Principles and deceived investors as to the Company's true performance, thereby artificially inflating the price of Key securities during the Class Period. The truth began to emerge on March 15, 2004. On that date, the Company announced that that it would not meet the Securities and Exchange Commission deadline for filing its annual report because it had yet to complete its review of "certain idle equipment" with a book value of $55 million, and that the review might result in "a revision to the 2003 earnings." The Company maintained, however, that, "the underlying fundamentals of the Company are strong and the outlook remains positive." The next two months were punctuated by a series of additional disclosures, each of which further depressed Key's stock price. The Class period ends on June 4, 2004. The morning of the next trading day, June 7, 2004, before the market opened, defendants announced that they were "withdrawing all previous earnings forecasts of operating results for 2004," that they were doing so "in light of current uncertainties affecting the Company," and that they had received notice from the indenture trustee of its 6.375% and 8.375% senior Notes that the Company was in default and had 90 days to cure the default. On this news, the price of Key shares plummeted on extremely high trading volume of 13,963,900 shares. Key shares had closed at $9.62 on June 4, 2004. On June 7, 2004 they reached an intra-day low of $7.00, down 27%, before rebounding to close the day at $8.67.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
If you feel you qualify for damages or remedies that might be awarded in this class action please fill in our form on the right to submit your complaint.
If your injustice does not match the complaint described above, please use this form to register your complaint. Thank you.
