Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased DXC Technology Company (“DXC” or the “Company”) (NYSE: DXC) common stock between May 26, 2021, and May 16, 2024, inclusive (the “Class Period”). DXC investors have until October 1, 2024 to file a lead plaintiff motion.
Investors suffering losses on their DXC 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 howardsmith@howardsmithlaw.com.
On August 3, 2022, DXC released disappointing financial results for the first quarter of fiscal year 2023, attributing it to “cost optimization efforts [moving] at a slower pace than anticipated.” On this news, DXC’s stock price fell $5.37, or 17%, to close at $26.15 per share on August 2, 2022, thereby injuring investors.
Then, on December 20, 2023, DXC announced that sudden departure of its CEO and Chairman of the Board. On this news, DXC’s stock price fell $3.04, or 12.1%, to close at $21.99 per share on December 20, 2023.
Then, on May 16, 2024, DXC’s new CEO stated that “the previous restructurings did not set a real, clean, solid, fully integrated baseline for profitable growth” because the systems that were acquired over time were “never integrated, never deduped,” and admitted that the Company was “not [a] fully functional organization.” Additionally, the Company disclosed that it would need to spend an additional $250 million to achieve the restructuring and integration process that it had previously claimed to have been successfully implementing. On this news, DXC’s stock price fell $3.36, or 16.9%, to close at $16.52 per share on May 17, 2024, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company had reduced restructuring and transaction, separation, and integration costs during the Class Period by curbing the Company-wide “transformation” and had thereby simply deferred costs that DXC would ultimately need to spend to finally implement the restructuring that it claimed to be successfully addressing during the Class Period; and (2) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased DXC 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 or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
