Barrack, Rodos & Bacine Notifies DXC Technology Company (DXC) Shareholders of Securities Class Action Lawsuit by Investing.com
PHILADELPHIA, Aug. 17, 2024 (GLOBE NEWSWIRE) — The law firm of Barrack, Rodos & Bacine announces that a class action lawsuit has been filed in the United States District Court for the Eastern District of Virginia, Alexandria Division, on behalf of investors who purchased stock in DXC Technology Company (NYSE:) (NYSE: DXC) from May 26, 2021 through May 16, 2024 (Class Period), alleging fraudulent violations of federal securities laws. The stock, which traded as high as $41.23 per share during the Class Period, is currently trading at just $19.60 per share.
If you purchased DXC stock during the Class Period and lost your investment, you are encouraged to contact us regarding your rights in this matter and the possibility of bringing this lawsuit. You can contact the firm either by calling Linda Border (ext. 108) or Mark Stein (ext. 163) at 877-386-3304, or by email at investoralert@barrack.com.
Investors have until October 1, 2024 to submit a motion to be designated as lead plaintiff. Your ability to participate in any recovery does not require that you act as the lead plaintiff or attempt to do so.
DXC, founded in 2017, provides information technology services and solutions in the US and elsewhere through two divisions: Global Business Services and Global Infrastructure Services. Since its founding, DXC has acquired several other companies and business ventures to help expand DXC's capabilities and market reach. As stated in the complaint, sometime before May 26, 2021, the Company announced that it had embarked on a transformational journey that will set it in the future. On May 26, 2021, DXC announced its year-end financial results and told investors that DXC has changed direction [its] revenues and margins from declining to improving. The complaint alleges that at all subsequent relevant times, DXC misrepresented the progress or success of its ongoing transformation journey and DXC's ability to integrate the companies and business plans it had acquired and, for nearly three years, DXC publicly disclosed its success in implementing its integration. strategy, while, at the same time, expressing commitment to reduce DXC's restructuring and costs, divestment, and integration (TSI), increase cash flow, and free [its] true leadership power. However, as the complaint states, DXC and its management knew, at all material times, that DXC could only reduce its TSI costs by limiting its merger efforts. Thus, allegedly, unbeknownst to the investors, the alleged continued success of the merger strategy was in direct conflict with DXC's stated commitment to reducing TSI's costs.
The complaint also claims that the market discovered the truth about DXC in a series of disclosures on August 3, 2022 (when DXC's stock price fell 17% from $31.52 to $26.15 per share), and December 2-, 2022 (when the DXC suddenly announced the departure of the CEO and Chairman, and its stock fell 12% from $25.03 to $21.99 per share), and finally, on May 16, 2024 (when DXC's new CEO admitted that The consolidation strategy DXC had honed for years didn't lay the groundwork for that growth and that the systems DXC acquired over the years were never consolidated, never rigged, among other disclosures, leading to a 17% drop in the stock from $19.88 to $16.52 per share. ).
Barrack, Rodos & Bacine, which won a record-setting settlement at the time against stockholders of The Mills Corporation in the same US District Court where the DXC case is pending, has more than four decades of experience prosecuting securities class actions. The firm's largest returns on behalf of investors include: $6.19 billion to WorldCom investors, $3.32 billion to Cendant investors, $1.05 billion to McKesson (NYSE: ) investors, and $970.5 million to AIG (NYSE: ) investors.
Source: Barrack Rodos & Bacine
