NEW YORK, March 14, 2020 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of HP Inc. (“HP” or the “Company”) (NYSE: HPQ). Such investors are advised to contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888-476-6529, ext. 7980.
The investigation concerns whether HP and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On February 27, 2019, HP reported disappointing total Supplies revenue for the first quarter of fiscal 2019, citing weaker-than-predicted demand from commercial customers in the Company’s Europe, the Middle East, and Africa market. In reporting these results, HP acknowledged that its traditional “four-box model”—focused on in-store base, usage, market share, and price ( i.e. , the four key drivers of revenue growth)—had been based upon incorrect data concerning inventory, market share, and pricing assumptions. HP also revealed that it lacked telemetry data to determine reliable market share assumptions for its Supplies business. Accordingly, the Company revised its previous estimate of Supplies revenue for fiscal 2019 to a decline of 3%, versus prior guidance of flat to slightly up revenue year over year. On these disclosures, HP’s stock price fell $4.12 per share, or 17.27%, to close at $19.73 per share on February 28, 2019.
On May 30, 2019, at the Sanford C. Bernstein Strategic Decisions Conference, HP’s President and Chief Executive Officer Dion J. Weisler disclosed that the consumer segment of the Company’s supplies business had had telemetry data for years, meaning that management had known the importance of telemetry data for an accurate model and that the commercial Supplies business lacked this key input. On this news, HP’s stock price fell $0.46 per share, or 2.4%, to close at $18.68 per share on May 31, 2019. Then, on August 22, 2019, HP announced that Weisler would step down from his roles at the Company at the end of October 2019 due to a family health matter. HP also announced mixed earnings results from the third quarter of fiscal 2019, with Supplies revenue down 7% year-over-year. On this news, HP’s stock price fell $1.12 per share, or 5.92%, to close at $17.81 per share on August 23, 2019.
Finally, on October 3, 2019, HP announced that it was departing from the purely transactional Supplies-centric business model” and moving away from using the four-box model, transitioning instead to a hardware-driven business model. Under the new business model, HP would de-emphasize Supplies revenue as “the singular metric to determine our progress” and instead focus on “the key metrics [of] service growth and operating profit dollars, which better reflect[] the system profitability.” HP also announced mass layoffs as part of a major restructuring. On these disclosures, HP’s stock price fell $1.76 per share, or 9.57%, to close at $16.64 per share on October 4, 2019.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
CONTACT: Robert S. Willoughby Pomerantz LLP rswilloughby@pomlaw.com
