SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (http://www.rgrdlaw.com/cases/diebold-nixdorf-incorporated/) today announced that a class action has been commenced on behalf of purchasers of Diebold Nixdorf, Incorporated (NYSE: DBD) common stock during the period between February 14, 2017 and August 1, 2018 (the “Class Period”), a longer period than has been asserted by previously filed securities class actions pending against Diebold and its executives. This action was filed in the Northern District of Ohio and is captioned City of Livonia Retiree Health and Disability Benefits Plan v. Diebold Nixdorf, Incorporated, et al., No. 19-cv-1887.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Diebold common stock during the Class Period to seek appointment as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from July 2, 2019. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Brian Cochran at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. You can view a copy of the complaint as filed at http://www.rgrdlaw.com/cases/diebold-nixdorf-incorporated/.
The complaint charges Diebold and certain of its former officers with violations of the Securities Exchange Act of 1934. Diebold is an international financial and retail technology company that specializes in the sale, manufacture, installation, and service of self-service transaction systems (such as ATMs and currency processing systems), point-of-sale terminals, physical security products, and software and related services.
In November 2015, Diebold entered into a merger agreement with one of its primary competitors, Germany’s Wincor Nixdorf, creating the largest ATM manufacturer in the world with a dominant market share of over 30%. The acquisition closed in August 2016. In the months that followed, Diebold and its executives repeatedly claimed that integration efforts were exceeding expectations and that the combined company was successfully executing sales.
The complaint alleges that these and similar statements were materially false and misleading when made. In fact, Diebold was suffering from massive inefficiencies created by the acquisition. As a consequence, Diebold had missed significant sales opportunities, was ceding market share to competitors, and was suffering from tens of millions of dollars in integration cost overruns. As a result of defendants’ false statements, Diebold common stock traded at artificially inflated prices throughout the Class Period.
On May 2, 2018, Diebold issued a press release announcing disappointing first quarter 2018 financial results. The release stated that the Company had achieved revenue of $1.1 billion for the quarter and a $21 million operating loss. Then on August 1, 2018, in connection with the Company’s release of its second quarter 2018 financial results, Diebold disclosed that its business condition was far worse than previously reported. Diebold revealed that it had suffered an operating loss of over $131 million during the quarter, which included a $90 million impairment of assets primarily related to the Wincor Nixdorf acquisition. The Company also revised its annual revenue guidance downward and revealed that net losses for the year were expected to reach $365 million to $325 million. As a result, Diebold stated that it needed to engage its lenders to review its credit agreements, an indication that the Company was running into significant liquidity concerns. On this news, the price of Diebold stock fell 38% to close at $7.05 per share on August 1, 2018.
Plaintiff seeks to recover damages on behalf of all purchasers of Diebold common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.