SAN DIEGO, Aug. 22, 2024 (GLOBE NEWSWIRE) — Robbins LLP notifies investors that a shareholder class action lawsuit has been filed on behalf of all persons and entities who purchased or otherwise acquired common stock of DXC Technology Company (NYSE: DXC) between May 26, 2021 and May 16, 2024. DXC is an information technology (“IT”) services and consulting company.
For more information, please submit the form, email Attorney Aaron Dumas, Jr., or call (800) 350-6003.
Allegations: The Robbins Law Firm is investigating allegations that DXC Technology Corp. (DXC) misled investors about its business and financial condition.
According to the complaint, throughout the Class Period, Defendants misrepresented their ongoing “transformation journey” and the Company's ability to integrate previously acquired companies and operational systems. DXC touted its continuing success in executing its integrations while repeatedly emphasizing the Company's commitment to reduce restructuring and transaction, separation and integration (TSI) costs in order to increase free cash flow and “unlock true earnings power.” In reality, Defendants knew or recklessly disregarded that the Company could only reduce restructuring and TSI costs by limiting its integration efforts.
According to the complaint, on August 3, 2022, DXC reported disappointing first quarter financial results despite reiterating its guidance only six weeks prior. DXC blamed the poor performance on “slower than expected progress in its cost optimization efforts.” These disclosures caused the price of DXC's common stock to fall 17% from $31.52 per share to $26.15 per share.
Then, on May 16, 2024, DXC's CEO admitted that “the previous restructuring did not set a realistic, clean, solid, fully integrated baseline for profitable growth.” This was because systems acquired over time “were never integrated or de-duplicated,” and the company “was not a fully operational organization.” DXC also announced that it would need to spend an additional $250 million to accomplish the restructuring and integration process that it had falsely represented it was successfully conducting during the Class Period. These disclosures caused the price of DXC common stock to fall by approximately 17% from $19.88 per share to $16.52 per share.
WHAT TO DO NEXT: You may be eligible to join a class action lawsuit against DXC Technology. Shareholders who wish to serve as lead plaintiff in a class action should contact Robbins LLP. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You may be eligible to receive compensation even if you do not join the lawsuit. If you choose to do nothing, you may remain an absent class member. Click here for more information.
All representation is on a contingency fee basis. Shareholders do not pay fees or expenses.
About Robbins LLP: Some law firms announcing on this matter don't actually handle securities class actions, but Robbins LLP does. A recognized leader in shareholder rights litigation, Robbins LLP's lawyers and staff have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold corporate executives accountable for misconduct since 2002. Since its inception, the firm has obtained more than $1 billion for shareholders.
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