DXC Technology Company (NYSE: DXC) Investor Securities Class Action Lawsuit 12/27/2018

If you purchased a significant amount of shares of DXC Technology Company (NYSE: DXC) between February 8, 2018 and November 6, 2018, and / or if you purchased any NYSE: DXC shares prior to February 2018 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: February 25, 2019. NYSE: DXC investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
DXC Technology
Case Name: 
DXC Technology Shareholder Class Action Lawsuit 12/27/2018
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: DXC
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
12/27/2018
Class Period Begin: 
02/08/2018
Class Period End: 
11/06/2018
Court of Filing: 
U.S. District Court for the Eastern District of Virginia
Deadline To File for Lead: 
02/25/2019
Summary: 

An investor in shares of DXC Technology Company (NYSE: DXC) filed a lawsuit in the U.S. District Court for the Eastern District of Virginia over alleged violations of Federal Securities Laws by DXC Technology Company in connection with certain allegedly false and misleading statements made between February 8, 2018 and November 6, 2018.

Tysons, VA based DXC Technology Company, together with its subsidiaries, provides information technology services and solutions primarily in North America, Europe, Asia, and Australia. DXC Technology Company reported that its Total Revenue rose from over $7.6 billion for the 12 months period that ended on March 31, 2017 to over $24.55 billion for the 12 months period that ended on March 31, 2018 and that its Net Loss of $123 million turned into a Net Income of over $1.75 million over those respective time periods.

Shares of DXC Technology Company (NYSE: DXC) reached as high as $96.75 per share in September 2018.

On October 24, 2018, an article was published titled “DXC axes Americas boss amid latest deck chair musical.” The article discussed the early October 2018 surprise firing of the head of the Company’s Americas sales force due to a sharp decline in the region’s revenue and, specifically, a reported 10%-15% revenue shortfall.

Later the same day, DXC Technology Company filed a Form 8-K with the SEC in response to the news of the firing, which reiterated the Company’s fiscal 2019 earnings per share guidance.

Then on November 6, 2018, DXC Technology Company reported its second quarter 2019 financial results in a press release, providing specific revenue, pre-tax earnings and gross margin results for the quarter. On the same day, during a conference call for investors, DXC Technology Company also disclosed that it had lost sales to significant customers, that quarterly revenues would fall short of expectations by hundreds of millions of dollars, and that the Company would reduce its fiscal 2019 revenue outlook by $800 million. During the conference call, DXC Technology Company also revealed that customers were scaling back upgrades in some instances, that the digital space was not growing at the previously reported rates, and that DXC Technology Company had changed its sales approach for two quarters and that the approach had been reversed because it was not working.

Shares of DXC Technology Company (NYSE: DXC) declined on December 24, 2018 to as low as $49.55 per share.

According to the complaint the plaintiff alleges on behalf of purchasers of DXC Technology Company (NYSE: DXC) common shares between February 8, 2018 and November 6, 2018, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between February 8, 2018 and November 6, 2018, the defendants failed to disclose that the Company had changed or planned to change the operations of its sales teams, deploying generalized sales teams as opposed to the specialized teams that were better capable of delivering specialized services to its clients; that the Company’s workforce optimization strategy of sharply reducing staff while reducing costs was resulting in a shortage of sales personnel who could execute on demand for services, thereby risking and ultimately losing sales and revenue opportunities; and that, as a consequence, the Company’s revenue and financial performance guidance for fiscal 2019 was without a reasonable basis.