NEW YORK--(BUSINESS WIRE)--Scott+Scott Attorneys at Law LLP (“Scott+Scott”), a national securities and consumer rights litigation firm, is investigating whether certain directors and officers of DXC Technology Company (“DXC” or the “Company”) (NYSE:DXC) breached their fiduciary duties to the Company and its shareholders. If you are a DXC shareholder, you are encouraged to contact attorney Joe Pettigrew with Scott+Scott for additional information at (844) 818-6982.
Scott+Scott is investigating whether members of DXC’s board of directors made or allowed DXC to make false and/or misleading statements and/or failed to disclose that: (i) the Company had already changed the operations of its sales staff, deploying generalized sales teams as opposed to the specialized teams that were better capable of delivering specialized services to its clients; (ii) the Company’s workforce optimization strategy of sharply reducing staff while reducing costs was resulting in a shortage of sales personnel who could execute on demand for services, thereby risking and ultimately losing sales and revenue opportunities; (iii) in light of the above, the Company’s revenue and financial performance guidance for full year 2019 and reaffirmation of the guidance during the relevant period was without a reasonable basis; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On October 24, 2018, The Register published an article discussing the surprise firing of Karan Puri, who headed the Company’s Americas sales force, due to a double-digit decline in the region’s revenue. The article also suggested that an internal Company source indicated that DXC had been struggling to efficiently serve demand from its customers. On this news, DXC’s common stock fell $14.31 per share, over 16%, to close at $73.25 per share on October 24, 2018.
On November 6, 2018, after the market closed, DXC reported its second quarter 2019 financial results, revealing that the Company’s customers were scaling back upgrades, its new sales approach was ineffective, and its fiscal year 2019 outlook would be reduced by $800 million. On this news, the Company’s common stock fell $9.00 per share, or about 12.5%, to close at $63.21 per share on November 7, 2018.
What You Can Do
If you are a DXC shareholder, you may have legal claims against the Company’s directors and officers. If you wish to discuss this investigation, or have questions about this notice or your legal rights, please contact attorney Joe Pettigrew toll-free at (844) 818-6982 or at jpettigrew@scott-scott.com.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.
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