RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased DXC Technology Company (“DXC” or the “Company”) (NYSE: DXC) securities between February 8, 2018 and November 6, 2018, inclusive (the “Class Period”).
DXC shareholders may, no later than February 26, 2019, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of DXC and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose adverse information. Specifically, the complaint alleges that defendants: (1) failed to disclose that the Company had changed or planned to change the operations of its sales teams, deploying generalized sales teams as opposed to the specialized teams that were better capable of delivering specialized services to its clients; (2) that the Company’s workforce optimization strategy of sharply reducing staff while reducing costs was resulting in a shortage of sales personnel who could execute on demand for services, thereby risking and ultimately losing sales and revenue opportunities; (3) and that, consequently, the Company’s revenue and financial performance guidance for fiscal 2019 was without a reasonable basis.
On October 24, 2018, it was reported that Karan Puri, who headed the Company’s Americas sales force was fired due to a sharp double digit decline in the region’s revenue. The article also suggested that an internal Company source had indicated that DXC Technology had been struggling to efficiently serve the demand from its customers.
On this news, the Company’s stock price fell 16%, to a low of $69.51 per share on October 24, 2018.
Then on November 6, 2018, the Company reported its second quarter 2019 financial results, and that the Company would reduce its FY19 revenue outlook by $800 million.
On this news, the Company’s stock price fell 13%, to close at $63.21 per share on November 7, 2018.
If you are a member of the class, you may, no later than February 26, 2019, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.