NEW YORK, March 07, 2025 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Xerox Holdings Corporation (NASDAQ:XRX) on behalf of long-term stockholders following a class action complaint that was filed against Xerox on November 19, 2024 with a Class Period from January 25, 2024 to October 28, 2024. Our investigation concerns whether the board of directors of Xerox have breached their fiduciary duties to the company.
On April 23, 2024, before the market opened, the Company revealed that for second quarter 2024, quarterly revenue was down 12.4% year-over-year to $1.50 billion, net loss fell to -$113 million (down $184 million year-over-year), and equipment sales declined 25.8% year-over-year to $290 million. The Company admitted, in part, “geographic simplification” had driven the year-over-year decline. The Company also partially disclosed that its “Reinvention” plan had been “initially disruptive to sales operations” but assured investors it was “seeing the benefits of the new business unit-led operating model in equipment order momentum.”
On this news, the Company’s share price fell $1.66, or 10.11%, to close at $14.76 per share on April 23, 2024, on unusually heavy trading volume.
Then, on October 29, 2024, before the market opened, the Company revealed “lower-than-expected improvements in sales force productivity” and “delays in the global launch of two new products” had led to “sales underperformance.” The Company disclosed that for third quarter 2024, quarterly revenue was down 7.5% year-over-year to $1.53 billion, net loss fell to -$1.2 billion (down $1.3 billion year-over-year), and equipment sales declined 12.2% year over year to $339 million. In a corresponding earnings call, the Company’s Chief Operating Officer John Bruno revealed the product delay was in fact a “forecasting issue” where the Company “had higher expectations that we were going to flush through the older product” which it needed to “sell through” in order to “make those transitions.”
On this news, the Company’s share price fell $1.79, or 17.41%, to close at $8.49 per share on October 29, 2024, on unusually heavy trading volume.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that, after a large workforce reduction, the Company’s salesforce was reorganized with new territory assignments and account coverage; (2) that, as a result, the Company’s salesforce productivity was disrupted; (3) that, as a result, the Company had a lower rate of sell-through of older products; (4) that the difficulties in flushing out older product would delay the launch of key products; (5) that, as a result, Xerox was likely to experience lower sales and revenue; and (6) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you are a long-term stockholder of Xerox, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at investigations@bespc.com, by telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. 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.
Follow us for updates on LinkedIn, X, and Facebook, and keep up with other news by following Brandon Walker, Esq. on LinkedIn and X.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
- Camfil USA Provides Strategic Framework for Effective Air Filter Procurement - May 9, 2025
- TGS Successfully Commenced an Active North Europe Summer Season - May 9, 2025
- VGP Trading Update - May 9, 2025
