We are investigating Matrix Service Company (MTRX) (“Matrix” or the “Company”) for potential violations of the federal securities laws.
On February 6, 2020, Matrix announced its financial and operating results for the second fiscal quarter and disclosed that it had recorded a goodwill impairment of $24.9 million in its Electrical Infrastructure segment. In a press release, Matrix stated that “the impairment of the goodwill was due to the financial performance of portions of the power delivery business that led to depressed gross margins, which accelerated during the second quarter.” As a result, Matrix advised investors that it is “implementing significant changes to the operations and management of its Electrical Infrastructure segment, including changes to leadership, modifications to operational processes, changes to mid-level operational personnel, and increased business development resources.” On this news, Matrix’s stock price fell $7.00 per share, or 35.26%, closing at $12.85 per share on February 6, 2020.