Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors that acquired DXC Technology Company (DXC or the Company) (NYSE: DXC) securities between February 8, 2018 and November 6, 2018, inclusive (the Class Period). DXC investors have until February 25, 2019 to file a lead plaintiff motion.
On November 6, 2018, DXC announced that it would be reducing its 2019 revenue projection by over $800 million. This announcement followed news on October 24, 2018 that DXC had earlier that month laid off the head of sales force for the Americas, along with further recent layoffs of senior management amid loss of forecasted revenue and customer contracts. On this news, DXCs share price fell $9.00 per share, or more than 12%, to close at $63.21 per share on November 7, 2018, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose adverse information. Specifically, the complaint alleges that defendants: (1) failed to disclose that the Company had changed or planned to change the operations of its sales teams, deploying generalized sales teams as opposed to the specialized teams that were better capable of delivering specialized services to its clients; (2) 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 risking and ultimately losing sales and revenue opportunities; (3) and that, consequently, the Company’s revenue and financial performance guidance for fiscal 2019 was without a reasonable basis.
If you purchased shares of DXC, 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 [email protected], or visit our website at www.howardsmithlaw.com.
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