SAN DIEGO & NORTH CANTON, Ohio--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Diebold Nixdorf, Incorporated (NYSE: DBD) filed a class action complaint for alleged violations of the Securities Exchange Act of 1934 between February 14, 2017 and August 1, 2018. Diebold Nixdorf offers connected commerce solutions to financial institutions and retailers in a variety of global regions. In 2016, Diebold Nixdorf changed its name from Diebold to Diebold Nixdorf following its acquisition of Wincor Nixdorf AG.
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Diebold Nixdorf, Incorporated (DBD) Accused of Misleading Shareholders
According to the complaint, in August 2016, Diebold finalized its merger with Wincor Nixdorf. Following the acquisition, Diebold and its executives repeatedly claimed that integration efforts were exceeding expectations and continuously reaffirmed its 2017 financial guidance. In reality, however, Diebold was suffering from massive inefficiencies created by the acquisition, which had materially worsened Diebold's position and caused Diebold to suffer tens of millions of dollars in integration cost overruns. Then, on May 2, 2018, Diebold issued a press release announcing disappointing first quarter 2018 financial results and even increased its projected net loss by almost $30 million. On this news, Diebold's stock fell 16% to close at $12.90 per share. Then, on August 1, 2018, Diebold shocked the market by revealing that it had suffered an operating loss of $131 million, $90 million of which could be attributed to the Wincor Nixdorf acquisition. On this news, the price of Diebold stock plummeted another 38% to close at $7.05. The stock has yet to recover from these drops.
Diebold Nixdorf, Incorporated (DBD) Shareholders Have Legal Options
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