NEW YORK, Aug. 20, 2024 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of DXC Technology Company (NYSE: DXC), CrowdStrike Holdings, Inc. (NASDAQ: CRWD), Symbotic Inc. (NASDAQ: SYM), and Five Below, Inc. (NASDAQ: FIVE). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
DXC Technology Company (NYSE: DXC)
Class Period: May 26, 2021 – May 16, 2024
Lead Plaintiff Deadline: October 1, 2024
According to the complaint, during the class period, defendants misrepresented its ongoing “transformation journey” and the Company’s ability to integrate previously acquired companies and business systems. While touting its ongoing success in implementing that integration, DXC repeatedly stressed its commitment to reducing the Company’s restructuring and transaction, separation, and integration (“TSI”) costs in order to increase its free cashflow and “unleash [its] true earnings power.” In truth, Defendants knew or recklessly disregarded that the Company was only able to reduce its restructuring and TSI costs by limiting its integration efforts.
The complaint alleges that on August 3, 2022, DXC reported disappointing first quarter results, despite having reiterated its guidance just six weeks prior. DXC blamed its poor performance on the fact that its “cost optimization efforts have moved at a slower pace than anticipated.” These disclosures caused the price of DXC common stock to decline by 17%, from $31.52 per share to $26.15 per share.
Then, on May 16, 2024, DXC’s CEO admitted that “the previous restructurings did not set a real, clean, solid, fully integrated baseline for profitable growth” because the systems that were acquired over time were “never integrated, never deduped,” and admitted that the Company was “not [a] fully functional organization.” DXC also announced it would need to spend an additional $250 million to achieve the restructuring and integration process it falsely claimed to have been successfully implementing during the Class Period. These disclosures caused the price of DXC common stock to decline nearly 17%, from $19.88 per share to $16.52 per share.
For more information on the DXC class action go to: https://bespc.com/cases/DXC
CrowdStrike Holdings, Inc. (NASDAQ: CRWD)
Class Period: November 29, 2023 – July 29, 2024
Lead Plaintiff Deadline: September 30, 2024
CrowdStrike is a global cybersecurity company that provides software that helps prevent data breaches. According to the complaint, CrowdStrike’s main product is the Falcon software platform, which purportedly uses artificial intelligence and machine learning technologies to detect, prevent, and respond to security breach threats.
The CrowdStrike class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) CrowdStrike had instituted deficient controls in its procedure for updating Falcon and was not properly testing updates to Falcon before rolling them out to customers; (ii) this inadequate software testing created a substantial risk that an update to Falcon could cause major outages for a significant number of CrowdStrike’s customers; and (iii) such outages could pose, and in fact ultimately created, substantial reputational harm and legal risk to CrowdStrike.
The CrowdStrike class action lawsuit further alleges that on July 19, 2024, news broke that a flawed Falcon content update caused major worldwide technology outages for millions of devices running Microsoft Windows. On this news, the price of CrowdStrike stock fell more than 11%, according to the complaint.
Then, on July 22, 2024, the CrowdStrike class action lawsuit further alleges that Congress called on CrowdStrike CEO, defendant George Kurtz, to testify regarding the crisis and CrowdStrike’s stock rating was downgraded by analysts such as Guggenheim and BTIG. On this news, the price of CrowdStrike stock fell more than 13%, according to the complaint.
Finally, on July 29, 2024, news outlets reported that Delta Air Lines had hired prominent attorney David Boies to seek damages from CrowdStrike following the software outage, according to the complaint. On this news, the price of CrowdStrike stock fell nearly 10%, according to the CrowdStrike class action lawsuit.
For more information on the CrowdStrike class action go to: https://bespc.com/cases/CRWD
Symbotic Inc. (NASDAQ: SYM)
Class Period: May 6, 2024 – July 29, 2024
Lead Plaintiff Deadline: October 15, 2024
According to the complaint, on July 29, 2024, Symbotic announced their 3Q24 financial results and then lowered its revenue guidance for the fourth quarter and full fiscal year 2024. Symbotic attributed their change in guidance to “schedule growth and higher labor costs during the quarter.” Analysts commenting on the stock questioned when management first knew and responded to the issues.
Following this news, Symbotic’s stock price opened at $26.36 per share or approximately 25% below the previous day’s close of $35.63 per share.
For more information on the Symbotic class action go to: https://bespc.com/cases/SYM
Five Below, Inc. (NASDAQ: FIVE)
Class Period: March 20, 2024 – July 16, 2024
Lead Plaintiff Deadline: September 30, 2024
According to the lawsuit, during the Class Period, defendants provided investors with false and/or materially misleading information about Five Below’s financial strength and operations, including its outlook for the first quarter and full year 2024. This information included Five Below’s statement that net sales are expected to be in the range of $826 million to $846 million based on opening approximately 55 to 60 new stores in the first quarter. Further, Five Below claimed that net sales for the full year are expected to be in the range of $3.97 billion to $4.07 billion based on opening between 225 and 235 new stores. Investors discovered that these statements were false and/or materially misleading when, on June 5, 2024, Five Below announced disappointing first quarter 2024 sales result and cut its full year 2024 guidance stating, “Net sales are expected to be in the range of $3.79 billion to $3.87 billion based on opening approximately 230 new stores.” At the same time, Five Below claimed that for the second quarter, “Net sales are expected to be in the range of $830 million to $850 million based on opening approximately 60 new stores.” When the true details entered the market, the lawsuit claims that investors suffered damages.
For more information on the Five Below class action go to: https://bespc.com/cases/FIVE
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
