Not material? They have a negative cash flow with about $3M in the bank. The lawyers alone will cause a "material" change. Not to mention, I believe there are FAR rules that may prevent them from doing business with the govt if found guilty. A striking blow to a company looking to win it's first contract.
Read the complaint - current KEYW employees took trade secrets and used them in a proposal. Exelis is suing for $55M and demanding the return of the stolen information and a debarment of the employees who were involved. How is that not material to operations? The complaint also alleges that senior leadership up to and including Moodispaw knew what was happening. This is also not the only lawsuit they are defending, so again, I ask - how is this not material to operations. And networthdev, before you say anything, let me be clear - I do not hold any position in this company whatsoever. I have better things to do with my cash, like hiding it under my mattress.