A securities class action has been filed in the USDC — E.D.VA. against DXC Technology Company (DXC) (“DXC” or the “Company”), on behalf of all persons or entities that purchased or otherwise acquired DXC common stock between May 26, 2021 and May 16, 2024, both dates inclusive (the “Class Period”).
Based in Ashburn, Virginia, DXC is an information technology (“IT”) services and consulting company. Founded in 2017, DXC offers a portfolio of services to help clients modernize their IT systems, including consulting, applications services, and infrastructure services. Since 2017, DXC has acquired several other companies to help expand its capabilities and market reach. Prior to the start of the Class Period, DXC announced that it had begun a new “transformation journey” that would position DXC for the future.
The complaint alleges throughout the Class Period, the Company 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. As a result of Defendants’ misrepresentations, shares of DXC common stock traded at artificially inflated prices throughout the Class Period. 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.
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