A class action lawsuit was filed against KBR Inc. (KBR) on September 19, 2025. The plaintiffs (shareholders) alleged that they bought KBR stock at artificially inflated prices between May 6, 2025, and June 19, 2025 (Class Period) and are now seeking compensation for their financial losses. Investors who bought KBR stock during that period can click here to learn about joining the lawsuit.
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KBR is a global engineering and technology company that specializes in providing innovative solutions for the aerospace, defense, and energy sectors.
HomeSafe Alliance (HomeSafe) is a joint company, in which KBR owns 72%. Before the Class Period, HomeSafe won a contract from the U.S. Department of Defense’s Transportation Command (TRANSCOM) to help military members and their families move.
KBR’s claims about HomeSafe’s current and future potential are at the heart of the current complaint.
KBR’s Misleading Claims
According to the lawsuit, KBR and two of its senior officers (the Defendants) repeatedly made false and misleading public statements throughout the Class Period. In particular, they are accused of omitting truthful information about the status of HomeSafe’s contract with TRANSCOM from SEC filings and related material.
In an earnings call held at the beginning of the Class Period, the CEO said that the HomeSafe contract had grown rapidly during the first quarter, the company’s operations improved significantly, and they were making good progress with increasing customer satisfaction.
During the question-and-answer part of the call, KBR’s CEO said that the company was very pleased with how things were progressing. KBR’s partnership with TRANSCOM was excellent, and the company was eager to move forward with the outstanding and transformative program.
During the same call, when responding to another analyst’s question, KBR’s CEO said that customer satisfaction had risen to just under 90%, and it had improved significantly over the past several weeks.
Finally, in response to yet another question during the same call, the company’s CEO said they were fully aligned with TRANSCOM, who had gone to Congress and publicly reaffirmed its commitment to the program. KBR was also completely committed and remained very confident about the program’s future.
However, subsequent events (detailed below) revealed that the defendants had failed to inform investors that TRANSCOM had material concerns with HomeSafe’s ability to fulfill the global household goods contract.
Plaintiffs’ Arguments
The plaintiffs maintain that the defendants deceived investors by lying and withholding critical information about the company’s business practices and prospects during the Class Period. Importantly, the defendants allegedly misled investors that the HomeSafe-TRANSCOM partnership was running smoothly without any issues and would ramp up in future quarters.
The information became clear in a press release issued by HomeSafe after the market closed on June 19, 2025. HomeSafe announced that it received notice from TRANSCOM on June 18, 2025, terminating the Global Household Goods Contract. HomeSafe stated that it had performed to the fullest extent possible given the challenges it faced, and disagreed with TRANSCOM’s reasons for ending the program.
The next day, KBR also issued a press release before the market opened. In the release, KBR stated that it had been working with HomeSafe and would continue to do so to fulfill all obligations to TRANSCOM and support the military service members and families served by the program. Following the news, KBR stock fell nearly 7% on June 20.
To conclude, the defendants misled investors about HomeSafe’s ongoing contract with TRANSCOM and the future potential. Due to these issues, KBR stock has lost 25.7% year-to-date.
