KBR Successfully Settles Legacy Legal Matter

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Jul 03, 2023, 16:30 ET

HOUSTON, July 3, 2023 /PRNewswire/ -- KBR (NYSE: KBR) announced today that it has settled a legacy lawsuit pending in federal court, USA ex rel Howard v. KBR, Inc. et al.

"We are pleased to put this decade-old lawsuit behind us as we close out one of our final legacy legal issues. We are proud of our work on LOGCAP III and of our broader, strong record of serving the armed forces," said Stuart Bradie, KBR President and CEO. "This settlement is yet another milestone in our commitment to resolve legacy legal matters and it helps reduce uncertainty and liquidity risk."

This case, first filed in 2011 and unsealed in 2014, concerns the cross-leveling of materials and equipment procurement and inventory management under the LOGCAP III contract in Iraq in the 2007-2011 time period. KBR agreed to resolve this case to avoid the needless expense, risk and distraction of a trial but denies that it has violated any laws, including the False Claims Act, or any rules and regulations for government contracting. KBR maintains that it met its contractual requirements while operating in a dangerous war-zone environment and is proud of our work to support the military.

Under the terms of the settlement, KBR denies any liability or wrongful conduct. KBR will pay $108.75 million, approximately half of which in restitution damages, plus interest to the U.S. government and will pay $34.95 million to the relators as attorney's fees. Payment of the settlement will occur in July 2023 and KBR will take the associated charge in its second quarter 2023 financial results. The Department of Justice, which declined to pursue this matter in 2014, will intervene for the purposes of settling and dismissing the lawsuit with prejudice.

About KBR

We deliver science, technology, and engineering solutions to governments and companies around the world. KBR employs approximately 32,000 people performing diverse, complex, and mission-critical roles in 33 countries.

KBR is proud to work with its customers across the globe to provide technology, value-added services, and long-term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We Deliver.

Visit www.kbr.com

Forward Looking Statements

The statements in this press release that are not historical statements, including statements regarding the company's settlement of a legacy lawsuit, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks, uncertainties and assumptions, many of which are beyond the company's control, that could cause actual results to differ materially from the results expressed or implied by the statements. These risks, uncertainties and assumptions include, but are not limited to, those set forth in the company's most recently filed Annual Report on Form 10-K, any subsequent Form 10-Qs and 8-Ks and other U.S. Securities and Exchange Commission filings, which discuss some of the important risks, uncertainties and assumptions that the company has identified that may affect its business, results of operations and financial condition. Due to such risks, uncertainties, and assumptions, you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Except as required by law, the company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

SOURCE KBR, Inc.