A lawsuit was filed on behalf of investors in DXC Technology Company (NYSE: DXC) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 01/29/2019 -- An investor, who purchased shares of DXC Technology Company (NYSE: DXC), filed a lawsuit over alleged Securities Laws violations by DXC Technology Company in connection with certain allegedly false and misleading statements.
Investors in shares of DXC Technology Company (NYSE: DXC) 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 at firstname.lastname@example.org or call +1(858) 779 - 1554.
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.
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.
Those who purchased shares of DXC Technology Company (NYSE: DXC) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego
About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
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