Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired DXC Technology Company ("DXC" or the "Company") (NYSE: DXC) common stock pursuant and/or traceable to the 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 (News - Alert) Corporation, Inc. to form DXC (the "Merger"). DXC investors have until November 15, 2019 to file a lead plaintiff motion.
Investors suffering losses on their DXC investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to email@example.com.
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 fisal 2020 guidance, expecting revenue between $20.2 billion and $20.7 billion, representing a $500 million shortfall from previously-issued guidance.
On this news, the Company's share price fell $15.74, or over 30%, to close at $35.91 per share on August 9, 2019, thereby injuring investors.
By the commencement of this action, DXC stock was trading as low as $32.70 per share, a nearly 45% decline from the $59 price per share at the time of the Merger.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants 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.
If you purchased or otherwise acquired DXC common stock pursuant and/or traceable to the Registration Statement, have information, or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190917005425/en/
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