NEW YORK, Jan. 10, 2016 (GLOBE NEWSWIRE) — Pomerantz LLP announces that a class action lawsuit has been filed against KLX, Inc. (“KLX” or the “Company”) (NASDAQ:KLXI), and certain of its officers. The class action, filed in United States District Court, Southern District of Florida, is on behalf of a class consisting of all persons or entities who purchased KLX securities between March 9, 2015 and November 11, 2015 inclusive (the “Class Period”). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who purchased KLX securities during the Class Period, you have until March 7, 2016 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
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 the Class Period, Defendants and certain of KLX current and former executive officers and directors have materially misrepresented the value of the Company’s identifiable intangible assets and goodwill associated with KLX’s Energy Services Group (“ESG”), as well as its policies and methodology related to the calculation of risk, goodwill, and asset impairment.
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.”
As a result of the news, the trading price of KLX’s common stock plunged 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%.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT: CONTACT: Robert S. Willoughby Pomerantz LLP [email protected]