NEW YORK, Aug. 06, 2024 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Eastern District of Virginia on behalf of all persons and entities who purchased securities of DXC Technology Company (“DXC” or the “Company”) (NYSE: DXC) between May 26, 2021 and May 16, 2024, inclusive (the “Class Period”).
The Complaint in the lawsuit alleges that Defendants made false and/or misleading statements and/or failed to disclose that the company misrepresented its ongoing “transformation journey” and the Company’s ability to integrate previously acquired companies and business systems. The Complaint further alleged that 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.
The Complaint alleges that these and similar statements made by Defendants during the Class Period were materially false and misleading. The Complaint further alleges, that the 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 further alleges, as a result of Defendants’ misrepresentations, shares of DXC common stock traded at artificially inflated prices throughout the Class Period.
The Complaint also alleges that the truth began to emerge after the market closed on August 3, 2022, when DXC reported disappointing first quarter results, despite having reiterated its guidance just six weeks prior. The Complaint also alleges that DXC blamed its poor performance on the fact that its “cost optimization efforts have moved at a slower pace than anticipated.” The Complaint alleges that these disclosures caused the price of DXC common stock to decline by 17%, from $31.52 per share to $26.15 per share. The Complaint also alleges that despite these disclosures, Defendants continued to misrepresent DXC’s transformation and successful reduction in restructuring and TSI costs in order to “transition[] DXC from stability to higher performance.”
The Complaint further alleges that, on December 20, 2023, DXC announced the sudden departure of its Chief Executive Officer (“CEO”) and Chairman of the Board, Defendant Michael Salvino, effective December 18, 2023. The Complaint further alleges that this disclosure caused the price of DXC common stock to decline by 12%, from $25.03 per share to $21.99 per share.
Investors who purchased or otherwise acquired shares of DXC should contact the Firm prior to the October 1, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
