Key Energy Services under investigation

A law firm recently began an investigation of an energy company's dealings after shareholders noted allegations of federal securities laws violations. It is possible that this will become a securities class action lawsuit at some point in the future.

Bronstein, Gewirtz  and Grossman, LLC, noted it is seeking answers as to whether the board of Key Energy Services, Inc., acted in the best interest of its shareholders. This is due to the company's audit by PEMEX, which occurred on Jan. 7. Key Energy Services has aggregate billings of $372 million with the firm. During the fourth quarter of 2013, it was likely that Key Energy Services was charged between $2 million and $3 million.

A statement from the firm regarding its fourth quarter performance outlined the issue.

"Our activity levels with PEMEX in the fourth quarter were materially lower than our prior forecast, which was based on indications we received through discussions with PEMEX," said Dick Alario, chairman, president and CEO of Key Energy Services.

The company's shares dropped 6.28 percent for a total monetary loss of $0.49 per share on Jan 7., the law firm explained. That brought the level to $7.34 per share.

Any shareholders who are interested in learning more about the investigation are encouraged to speak with the law firm. Additionally, those individuals who may have information that could benefit the investigation are also welcome to come forward. Speaking with firm members Peretz Bronstein or Eitan Kimelman is best and they can be reached by email or telephone. When addressing the office by email, it is important to not only leave a name and email, but also the mailing address and telephone number.

Second investigation commences
Another litigation firm will look into the situation after investors alerted them to a potential issue, as well. There also may be a class action claim from this investigation.

Law firm Pomerantz, LLP, noted it will examine allegations that Key Energy Services' board violated both Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. PEMEX's audit is significant, as the Mexico-based oil company is one of Key Energy Services' biggest customers.

It is also possible to speak with this law office in order to learn more about this action. Robert Willoughby is available to field questions from shareholders, and he can be reached by email or telephone.