SAN DIEGO & TYSONS, Va.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of DXC Technology Company (NYSE: DXC) filed a class action complaint against the company for alleged violations of the Securities Exchange Act of 1934 between February 8, 2018 and November 6, 2018. DXC, together with its subsidiaries, provides information technology services and solutions primarily in North America, Europe, Asia, and Australia.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/dxc-technology-co/
DXC Accused of Implementing Ineffective Workforce Optimization Strategy
According to the complaint, DXC misrepresented the company's financial condition to investors by repeatedly assuring them that the company had significantly cut costs by streamlining its workforce and optimizing its ability to capture new business. In reality, the company's workforce optimization strategy resulted in a shortage of sales personnel and lost sales and revenue opportunities. While touting promising prospects for DXC, company insiders sold over 215,000 shares of DXC stock for proceeds of nearly $20 million. On October 24, 2018, a report detailed the company's 10-15% revenue shortfall, lost customers, and the surprise firing of DXC's head of sales force, causing DXC's stock price to plummet 16%. Then, on November 6, 2018, DXC revealed that customers were scaling back upgrades and that the company’s new sales approach was ineffective. On this news, DXC's stock dropped a further 12.5% to close at $63.21 per share on November 7, 2018, and has since continued to fall.
DXC Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.