We are investigating KB Home (KBH) (“KB Home” or the “Company”) for potential violations of the federal securities laws.
On June 24, 2020, KB Home issued a press release announcing its financial and operating results for the second quarter of 2020. The Company disclosed that its sales and orders fell significantly more than expected, with net orders declining by 57% in the quarter. Explaining the results, KB Home cited “[t]he negative effects of the COVID-19 pandemic and the related extended public health and governmental measures of varying restrictiveness to contain and combat the outbreak[.]” On this news, KB Home’s stock price fell $3.92 per share, or 11.76%, to close at $29.41 per share on June 25, 2020.