DXC Technology Corporation Class Action Investigation
Girard Sharp is investigating allegations that DXC Technology Corporation may have violated federal law by making false and misleading statements and omissions about the purported success of its “strategic roadmap” after it merged with Computer Sciences Corporation.
DXC is alleged to have known that its reorganization plan would jeopardize its profitability and impair its client-servicing abilities.
If you are a current or former shareholder of DXC Technology Corporation (NYSE Ticker: DXC), you may be entitled to compensation. Protect your rights and contact a Girard Sharp securities attorney for a free and confidential case consultation by calling toll-free at (866) 981-4800 or by filling out the form below:
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History of Allegations Against DXC
In May 2018, DXC released earnings expectations of between $21.5 billion and $22 billion in revenue for fiscal year 2019.
Later in 2018, reports began to surface in trade publications that all was not well behind the scenes at DXC. An August 17, 2018 article in The Register reported that DXC employees had stated that the company was struggling to perform its client contracts because of substantial workforce reductions. Around the same time, executives are reported to have sold millions of dollars of stock.
Another Register article published on October 24, 2018 quoted statements from DXC insiders that the company was “descending into turmoil” and that in early October, CEO Mike Lawrie had called a “town hall” meeting to announce additional firings and a “10-15 percent shortfall in [forecast] revenues.” This news caused DXC’s stock price to decline by more than 16%, from $87.56 to $73.25 per share.
A Form 8-K filed by DXC on November 6, 2018 reported that the company suffered a disastrous 8% decline in year-over-year revenue, with a revenue shortfall of more than $440 million. As a result, DXC’s stock price dropped another 12%, from $72.21 to $63.21 per share, on extremely high trading volume.
If you are a current or former shareholder of DXC, you may be entitled to compensation. Protect your rights and contact a Girard Sharp securities attorney for a free and confidential case consultation by calling toll-free at (866) 981-4800 or by filling out the form above.
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For a free consultation about your potential claims, contact one of our consumer finance attorneys by filling out the form above or calling toll-free at (866) 981-4800.