Charleston, South Carolina, Aug. 13, 2024 (GLOBE NEWSWIRE) -- Poulin | Willey | Anastopoulo, LLC announces that a class action has been filed in the United States District Court for the Eastern District of Virginia on behalf of all persons and entities that purchased the common stock of DXC Technology Company (“DXC” or the “Company”) (NYSE:DXC) between May 26, 2021 and May 16, 2024, both dates inclusive (the “Class Period”). DXC is an information technology (“IT”) services and consulting company offering a portfolio of services to help clients modernize their IT systems, including consulting, application services, and infrastructure services.
The Complaint alleges that, throughout the Class Period, the Company misrepresented its ongoing “transformation journey” and the Company’s ability to integrate previously acquired companies and business systems and while touting its ongoing success in implementing that integration, the Defendants repeatedly stressed DXC’s commitment to reducing the Company’s restructuring and transaction, separation, and integration (“TSI”) costs in order to increase its free cash flow and unleash its true earnings power. According to the Complaint, these and similar statements made by Defendants during the Class Period were materially false and misleading because Defendants knew or recklessly disregarded that the Company was only able to reduce its restructuring and TSI costs by limiting its integration efforts.
The Complaint further alleges that the truth began to emerge after the close of the market on August 3, 2022, when DXC reported disappointing earnings, claiming its poor performance was because of its “cost optimization efforts … moved at a slower pace than anticipated.” This news caused the Company’s stock price to decline from $31.52 per share to $26.15, a loss of 17%. Then, on December 20, 2023, the Company announced the sudden departure of its Chief Executive Officer (“CEO”) and Chairman of the Board, Defendant Salvino, causing the price of the DXC’s to drop from $25.03 per share to $21.99, a decline of 12%. According to the Complaint, finally, on May 16, 2024, the Company’s new CEO admitted that the prior restructurings failed to provide a ‘fully integrated baseline for profitable growth” because the acquired systems were never integrated, the Company was “not [a] fully functionable organization” and would need to spend another $250 million to achieve the restructuring and integration that Defendants already claimed had been implemented during the Class Period. On this news the Company’s stock declined almost 17%, from $19.88 per share to $16.52 per share.
Investors who purchased or otherwise acquired (or currently own) DXC common stock should contact the Firm before October 1, 2024, the lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this securities class action, please contact Ahmad Jackson at 803-222-222 or via e-mail at ahmad.jackson@poulinwilley.com.
Any additional questions may be directed to Stuart J. Guber, Esq, at stuart.guber@poulinwilley.com, the Firm’s Director of Shareholder Services and Securities Litigation, with almost 35 years of experience representing public pension funds, Taft-Hartley union pension plans and health & welfare funds, and high net-worth investors and other individuals in securities class actions and opt-out litigation.
In addition, firm partner Roy Willey IV has served as counsel in class actions and multi district litigations across the country. He brings a creative, problem-solving based approach to handling cases for consumers, investors and others harmed through no fault of their own. As a result he has been repeatedly named among America’s Top 100 High Stakes Litigators, Best Lawyers, and Super Lawyers.
Poulin | Willey | Anastopoulo has offices in Florence, Charleston, Ladson, Columbia, Greenville, Lexington, Myrtle Beach, Rock Hill, and Hampton, South Carolina. Charlotte and Lumberton, North Carolina. Atlanta, Albany, Athens, Augusta, Columbus and Macon in Georgia. Visit RespectResults.com to learn more.
Name: Stuart J. Guber Email: stuart.guber@poulinwilley.com Job Title: Director of Shareholder Services and Securities Litigation
