Shareholder Alert: Bernstein Litowitz Berger & Grossmann LLP Announces the Filing of Securities Class Action Lawsuit Against DXC Technology Company
02 Agosto 2024 - 4:33PM
Business Wire
Today, prominent investor rights law firm Bernstein Litowitz
Berger & Grossmann LLP (“BLB&G”) filed a class action
lawsuit in the U.S. District Court for the Eastern District of
Virginia alleging violations of the federal securities laws by DXC
Technology Company (“DXC” or the “Company”) and certain of the
Company’s current and former executives (collectively,
“Defendants”). The action is brought on behalf of all persons or
entities that purchased shares of DXC common stock between May 26,
2021, and May 16, 2024, inclusive (the “Class Period”).
BLB&G filed this action on behalf of its client, Roofers’
Pension Fund, and the case is captioned Roofers’ Pension Fund v.
DXC Technology Company, No. 24-cv-1351 (E.D. Va.). The complaint is
based on an extensive investigation and a careful evaluation of the
merits of this case. A copy of the complaint is available on
BLB&G’s website by clicking here.
DXC’s Alleged Fraud
DXC is an information technology services and consulting company
that offers a portfolio of services to help clients modernize their
IT systems. Since 2017, DXC has acquired several other companies to
help expand its capabilities and market reach. The Company has
historically encountered challenges integrating these new companies
and systems, which has led to multiple company-wide restructurings.
In 2020, DXC announced that it had begun another “transformation
journey” that would position DXC for the future.
The complaint alleges that, throughout the Class Period,
Defendants made numerous materially false and misleading statements
and omissions concerning DXC’s ability to integrate previously
acquired companies and business systems, as well as their efforts
to reduce the Company’s restructuring costs. Specifically,
Defendants repeatedly touted the progress of DXC’s “transformation
journey,” and assured investors that their efforts to reduce
restructuring costs were successful and were “all sustainable and a
result of the operational work we are doing.” As a result of these
misrepresentations, the price of DXC common stock traded at
artificially inflated prices throughout the Class Period.
In truth, Defendants knew, or recklessly disregarded, that the
Company had reduced restructuring costs during the Class Period by
curbing the Company-wide “transformation” and had thereby simply
deferred costs that DXC would ultimately need to spend to finally
implement the restructuring that it claimed to be successfully
addressing during the Class Period.
The truth began to emerge on August 3, 2022, when DXC reported
disappointing first quarter results due to the fact that “cost
optimization efforts have moved at a slower pace than anticipated.”
Then, on December 20, 2023, DXC announced the sudden departure of
its Chief Executive Officer and Chairman of the Board of Directors,
Michael J. Salvino, effective December 18, 2023. Despite each of
these disclosures, Defendants continued to misrepresent the
progress of Company’s “transformation journey” and its successful
reduction in restructuring costs.
The truth was further revealed on May 16, 2024, when DXC
announced that the Company’s “previous restructurings did not set a
real, clean, solid, fully integrated baseline for profitable
growth” and the Company would need to spend an additional $250
million on increased restructuring. DXC explained that this “real
reset” was “absolutely needed, otherwise we’d just continue to
carry a really not fully functional organization.” As a result of
each of these disclosures, the price of DXC common stock declined
significantly.
If you wish to serve as Lead Plaintiff for the Class, you must
file a motion with the Court no later than October 1, 2024, which
is the first business day on which the U.S. District Court for the
Eastern District of Virginia is open that is 60 days after the
publication date of August 2, 2024. Any member of the proposed
Class may seek to serve as Lead Plaintiff through counsel of their
choice, or may choose to do nothing and remain a member of the
proposed Class.
If you wish to discuss this action or have any questions
concerning this notice or your rights or interests, please contact
Scott R. Foglietta of BLB&G at 212-554-1903, or via e-mail at
scott.foglietta@blbglaw.com.
About BLB&G
BLB&G is widely recognized worldwide as a leading law firm
advising institutional investors on issues related to corporate
governance, shareholder rights, and securities litigation. Since
its founding in 1983, BLB&G has built an international
reputation for excellence and integrity and pioneered the use of
the litigation process to achieve precedent-setting governance
reforms. Unique among its peers, BLB&G has obtained several of
the largest and most significant securities recoveries in history,
recovering over $40 billion on behalf of defrauded investors. More
information about the firm can be found online at
www.blbglaw.com.
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Scott R. Foglietta Bernstein Litowitz Berger & Grossmann LLP
1251 Avenue of the Americas, 44th Floor New York, New York 10020
(212) 554-1903 scott.foglietta@blbglaw.com