BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased HP Inc. (“HP” or the “Company”) (NYSE: HPQ) securities between February 23, 2017 and October 3, 2019, inclusive (the “Class Period”). HP investors have until April 20, 2020 to file a lead plaintiff motion.
Investors suffering losses on their HP investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to firstname.lastname@example.org.
On October 3, 2019, after the market closed, 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. The Company also announced mass layoffs as part of a major restructuring, in which it expected to cut between 7,000 to 9,000 positions, or up to 16% of its global workforce, over three years.
On this news, the Company’s share price fell $1.72, or nearly 10%, to close at $16.64, on unusually high trading volume.
The complaint alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) the four-box model was severely deficient and not a strong predictor of Supplies demand and outcomes, because HP lacked telemetry data from its commercial printers and had to use unreliable and stagnant market share data to develop assumptions for the four-box model; (2) the lack of telemetry data for commercial printing was a critical shortcoming of the four-box model because HP possessed telemetry data on its personal printing side and knew it was a necessary element for an accurate understanding of the Supplies channel; and (3) as a result, the Supplies inventory in the Company’s channel exceeded demand by at least $100 million and HP’s Supplies revenue growth was grossly inflated.
If you purchased HP securities, 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@example.com, or visit our website at www.howardsmithlaw.com.
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