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 (“DXC”) (NYSE: DXC) from May 26, 2021 through and including May 16, 2024 (the “Class Period”), alleging fraud-based 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 sustained a loss on your investment, you are encouraged to contact us about your rights in this matter and the possibility of leading this class action lawsuit. You may contact the firm at https://barrack.com/contact-us, or by calling Linda Border (ext. 108) or Mark Stein (ext. 163) at 877-386-3304, or via email at investoralert@barrack.com.
Investors have until October 1, 2024 to submit a motion to be appointed as lead plaintiff. Your ability to participate in any recovery does not require that you serve as lead plaintiff or attempt to do so.
DXC, which was founded in 2017, provides information technology services and solutions in the U.S. and elsewhere through two segments: “Global Business Services” and “Global Infrastructure Services.” Since its founding, DXC acquired several other companies and business systems to help expand DXC’s capabilities and market reach. As alleged in the complaint, sometime before May 26, 2021, the Company announced it had started a “transformative journey” that would position it for the future. On May 26, 2021, DXC announced its year-end financial results and told investors that DXC had “changed the direction of [its] revenues and margin from declining to improving.” The complaint alleges that at all subsequent relevant times, DXC misrepresented the progress or success of its ongoing “transformative journey” and DXC’s ability to integrate the companies and business systems it had acquired and, for nearly three years, DXC touted publicly its success in implementing its integration strategy, while, at the same time, expressing a commitment to reduce DXC’s restructuring and transaction, separation, and integration (“TSI”) costs, to increase cash flow, and to “unleash [its] true earnings power.” However, as the complaint alleges, DXC and its executives knew, at all material times, that DXC could only reduce its TSI costs by limiting its integration efforts. Thus, as alleged, unbeknownst to investors, the touted ongoing success of the integration strategy was directly at odds with DXC’s stated commitment to reducing TSI costs.
The complaint further alleges that the market learned the truth about DXC in a series of disclosures on August 3, 2022 (when DXC’s stock price dropped 17% from $31.52 to $26.15 per share), on December 2-, 2022 (when DXC announced the sudden departure of its 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 integration strategy DXC had touted for years did not set a baseline for growth and that the systems DXC had acquired over the years were “never integrated, never duped,” among other disclosures, leading to a 17% stock drop from $19.88 to $16.52 per share).
Barrack, Rodos & Bacine, which achieved a then record-setting recovery for purchasers of The Mills Corporation stock in the same U.S. District Court in which the DXC case is pending, has more than four decades of experience prosecuting securities law class actions. The firm’s largest recoveries on behalf of investors include: $6.19 billion for WorldCom investors, $3.32 billion for Cendant investors, $1.05 billion for McKesson investors, and $970.5 million for AIG investors.