Ademi & O’Reilly, LLP is investigating possible securities fraud claims against Matrix Service Company (NASDAQ: MTRX) resulting from inaccurate statements Matrix made regarding its internal controls, business practices, financial statements and prospects.
The investigation focuses on whether Matrix issued false and misleading statements regarding its business practices and prospects. Specifically, Matrix recorded a goodwill impairment of $24.9 million in its Electrical Infrastructure segment in the second quarter of 2020. 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 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.