|[August 07, 2014]
Lieff Cabraser Announces Class Action Litigation Against L-3 Communications Holdings, Inc. - LLL
SAN FRANCISCO --(Business Wire)--
The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class
action litigation has been brought on behalf of those who purchased or
otherwise acquired the securities of L-3 Communications Holdings, Inc.
("L-3" or the "Company") (NYSE: LLL) between April 25, 2013 and July 30,
2014, inclusive (the "Class Period").
If you purchased or otherwise acquired L-3 securities during the Class
Period, you may move the Court for appointment as lead plaintiff by no
later than September 30, 2014. A lead plaintiff is a representative
party who acts on behalf of other class members in directing the
litigation. Your share of any recovery in the action will not be
affected by your decision of whether to seek appointment as lead
plaintiff. You may retain Lieff Cabraser, or other attorneys, as your
counsel in the action.
L-3 investors who wish to learn more about the action and how to seek
appointment as lead plaintiff should click
here or contact Sharon M. Lee of Lieff Cabraser toll-free at
Background on the L-3 Securities Class Litigation
The action charges L-3 and certain of its senior officers with
violations of the Securities Exchange Act of 1934. L-3 is a prime
contractor in aerospace systems and national security solutions. L-3
also provides communication and electronic systems and products used on
military and commercial platforms.
The complaint alleges that throughout the Class Period, defendants made
false and/or misleading statements and/or failed to disclose that: (1)
L-3's financial statements contained errors related to the improper
deferral of cost overruns on a fixed-price maintenance and logistics
support contract that resulted in overstatement of operating income; (2)
L-3's net sales with respect to the fixed-price maintenance and
logistics support contract were overstated; and (3) the Company lacked
adequate internal controls over financial reporting.
On July 31, 2014, L-3 announced preliminary results for its second
quarter of 2014 and that it was conducting an internal review into
accounting matters at its Aerospace Systems segment. The Company
disclosed that it expects to incur an aggregate pre-tax charge of $84
million against operating income and a related reduction in net sales of
approximately $43 million, and of these charges, approximately $50
million relates to periods prior to 2014, and approximately $34 million
relates to the first half of 2014. Additionally, as a result of the
review, L-3 lowered its estimated operating income for the Aerospace
Systems segment by approximately $35 million for the second half of
2014. According to L-3, the adjustments primarily relate to contract
cost overruns that were inappropriately deferred and overstatements of
net sales, in each case with respect to a fixed-price maintenance and
logistics support contract. L-3 revealed that "the amounts associated
with these adjustments are the result of misconduct and accounting
errors at the Aerospace Systems segment."
On this news, the price of L-3 stock fell $14.68 per share, or 12.27%,
from its previous closing price of $119.64 on July 30, 2014, to close at
$104.96 per share on July 31, 2014, on extraordinarily heavy trading
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco,
New York, and Nashville, is a nationally recognized law firm committed
to advancing the rights of investors and promoting corporate
The National Law Journal has recognized Lieff Cabraser as one of
the nation's top plaintiffs' law firms for eleven years. In compiling
the list, the National Law Journal examines recent verdicts and
settlements and looked for firms "representing the best qualities of the
plaintiffs' bar and that demonstrated unusual dedication and
creativity." Best Lawyers and U.S. News have also named
Lieff Cabraser as a "Law Firm of the Year" each year the publications
have given this award to law firms.
For more information about Lieff Cabraser and the firm's representation
of investors, please visit http://www.lieffcabraser.com.
This press release may be considered Attorney Advertising in some
jurisdictions under the applicable law and ethical rules.
[ Back To TMCnet.com's Homepage ]