NEW YORK, Feb. 05, 2019 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in DXC Technology Company ("DXC" or the "Company")(NYSE: DXC ) of the February 25, 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 stock or options between February 8, 2018 and November 6, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/DXC. 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 rgonnello@faruqilaw.com.
The lawsuit has been filed in the U.S. District Court for the Eastern District of Virginia on behalf of all those who purchased DXC common stock between February 8, 2018 and November 6, 2018 (the "Class Period"). The case, City of Warren Police and Fire Retirement System v. DXC Technology Company et al. , No. 18-cv-01599 was filed on December 27, 2018, and has been assigned to Judge Anthony John Trenga.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) the Company had changed or planned to change the operations of its sales teams; (2) the Company was deploying generalized sales teams as opposed to the specialized teams that were better capable of delivering specialized services to its clients; (3) 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 losing sales and revenue opportunities; and (4) that, as a consequence, the Company’s revenue and financial performance guidance for fiscal 2019 was without a reasonable basis.
On November 6, 2018, the Company reported its second quarter FY19 financial results. On the same day, during a conference call for investors, the Company also disclosed that it had indeed lost big sales to significant customers, that quarterly revenues would fall short of expectations by hundreds of millions of dollars, and that the Company would reduce its FY19 revenue outlook by $800 million.
On this news, DXC's share price fell from $71.99 per share on November 6, 2018 to a closing price of $63.02 on November 7, 2018: a $8.97 or a 12.46% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding DXC's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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