Shareholder Alert: Robbins LLP Announces That Leidos Holdings, Inc. (LDOS) is Being Sued for Misleading Shareholders

SAN DIEGO & RESTON, Va.--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that a purchaser of Leidos Holdings, Inc. (NYSE: LDOS) filed a class action complaint against the Company and its officers and directors for alleged violations of the Securities Exchange Act of 1934 between May 4, 2020 and February 23, 2021. Leidos is a science, engineering, and information technology company that provides services and solutions in the defense, intelligence, homeland security, civil and health markets, domestically and internationally.

If you suffered a loss due to Leidos Holdings, Inc.'s misconduct, click here.

Leidos Holdings, Inc. (LDOS) Overstated the Purported Benefits of its Acquisition of L3Harris' Security Detention & Automation Businesses

According to the complaint, throughout the relevant period, Leidos touted positive financial results and noted no changes in internal control over financial reporting other than the integration of Dynetics (acquisition completed on January 31, 2020) and L3Harris Technologies' Security Detection and Automation business (acquisition completed on May 4, 2020) into its system of internal control over financial reporting.

On February 16, 2021, Spruce Point Capital Management LLC published a report alleging, "Leidos is potentially covering up at least $100m of fictitious sales, mischaracterizing $355-367m of international revenue." The report also alleged that the Company was "concealing numerous product defects from investors, notably faulty explosive detection systems at airports and borders." On this news, Leidos' shares fell $2.58, or 2.4%, to close at $105.22 per share on February 16, 2021. On February 23, 2021, Leidos announced its fourth quarter and full year 2020 financial results. Therein, the Company reported $89 million related to L3Harris' SD&A businesses for the fourth quarter, meaning it would fall short of its projected $500 million annual sales. Leidos also expected cash flow of $850 million, below analysts' estimates of $1.083 billion. On this news, Leidos' stock price fell almost 10% to close at $93.51 per share on February 23, 2010. Then, on February 24, 2021, Spruce Point highlighted that Ledios had "materially expanded" the risk disclosures in its annual report for the year ended December 31, 2020. Spruce Point tweeted: "We believe it is validating all the major points of our report." On this news, Leidos' stock price fell $3.13, to close at $90.38 per share on February 24, 2021.

If you purchased shares of Leidos Holdings, Inc. (LDOS) between May 4, 2020 and February 23, 2021, you have until May 3, 2021, to ask the court to appoint you lead plaintiff for the class.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

Contact us to learn more:
Lauren Levi
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