KLX investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, KLX is the world’s leading provider of aerospace fasteners, consumables, and logistics services globally as KLX Aerospace Solutions. It also provides oilfield services and associated rental equipment across North America as KLX’s Energy Services Group (“ESG”)
The complaint alleges that throughout most of 2015, KLX and certain of its current and former executive officers and directors have materially misrepresented the value of the company’s assets. Specifically, the complaint alleges that KLX misrepresented the value of the identifiable intangible assets and goodwill associated with ESG, as well as its policies and methodology related to the calculation of risk, goodwill, and asset impairment.
The Class Period commences after March 6, 2015, 2015, when the company filed with the SEC its annual report on Form 10-K.
According to the complaint, on November 12, 2015, before the stock market opened, KLX announced preliminary financial results for the quarter ended November 30, 2015. In the press release, the company disclosed that “[d]uring the third quarter of 2015, the Company performed an interim asset impairment test.” Based on that asset impairment test, KLX stated, “the company expects to recognize a non-cash, after-tax asset impairment charge of approximately $435 million related to its Energy Services Group.”
Following this news, the trading price of KLX’s common stock fell from a closing price of $39.00 on November 11, 2015 to close at $32.11 on November 12, 2015, a single-day loss of approximately 16%.
If you are a member of the class described above, you may no later than March 7, 2016 , move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706