Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $100,000 Investing In DXC Technology Company To Contact The Firm
Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in DXC Technology Company ("DXC" or the "Company")(NYSEDXC) of the November 15, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in DXC common stock pursuant and/or traceable to the Company's April 2017 registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the April 2017 transaction by which Hewlett Packard Enterprise Company’s Enterprise Services segment was spun off and merged with Computer Sciences Corporation, Inc. to form DXC (the “Merger”) and would like to discuss your legal rights, please fill out the form below. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
The lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of all those who purchased DXC common stock pursuant and/or traceable to the Company's April 2017 IPO. The case, Costanzo v. DXC Technology Company et al., No. 19-cv-05794 was filed on September 16, 2019, and has been assigned to Beth Labson Freeman.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failed to disclose to investors: (1) that the planned "workforce optimization" plan involved implementing arbitrary quotas; (2) that the plan would cut thousands of jobs at the Company; (3) that jobs that were particularly at risk of being cut were held by longer-tenured, knowledgeable, and highly compensated senior personnel; (4) that these job terminations were selectively timed to artificially inflate reported earnings and other financial metrics; (5) that, at the time of the Merger, defendant Lawrie had forecasted plans for a $2.7 billion workforce reduction in the first year; (6) that, as a result of these workforce terminations, the Company was unlikely to deliver on client contracts; (7) that, as a result of the foregoing, the Company's clients would be dissatisfied and the relationships would be impaired; and (8) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
On February 6, 2019, a civil complaint was filed, alleging that certain officers of the Company were heavily focused on using cost-cutting efforts and layoffs to inflate short-term financial metrics and that these efforts substantially impaired the Company’s ability to deliver contractually required services to clients.
On August 8, 2019, after the market closed, the Company lowered its fiscal 2020 guidance, expecting revenue between $20.2 billion and $20.7 billion, representing a $500 million shortfall from previously issued guidance.
On this news, DXC’s stock fell from $51.65 on August 8, 2019 to $35.91 on August 9, 2019—a $15.74 or a 30.47% drop.
Since the completion of the Merger, the Company's share price has declined by over 40%.
DXC Technology Company
* The submission of this form does not create an attorney-client relationship.
Filed on 09/20/2019
Court N.D. Cal.
Lead Plaintiff Deadline 11/15/2019
32 days remaining
685 Third Avenue 26th Floor
10017 New York, New York
Phone (212) 983-9330
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Richard W. Gonnello email@example.com Phone (212) 983-9330 Fax (212) 983-9331