Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Northern District of California on behalf of of persons and entities that purchased or otherwise acquired DXC Technology Company (“DXC”) common stock pursuant and/or traceable to the registration statement and prospectus or other documents issued in connection with the April 2017 transaction by which Hewlett Packard Enterprise Company’s Enterprise Services segment was spun off and merged with Computer Sciences Corporation, Inc. to form DXC.
The filed complaint alleges that defendants made materially false and/or misleading statements and/or failed to disclose that: (1) the planned “workforce optimization” plan involved implementing arbitrary quotas; (2) the plan would cut thousands of jobs at the Company; (3) jobs that were particularly at risk of being cut were held by longer-tenured, knowledgeable, and highly compensated senior personnel; (4) these job terminations were selectively timed to artificially inflate reported earnings and other financial metrics; (5) at the time of the formation of DXC Technology Company, J. Michael Lawrie (the incoming President, Chief Executive Officer, and Chairman of the Board at DXC) had forecasted plans for a $2.7 billion workforce reduction in the first year; (6) as a result of these workforce terminations, the Company was unlikely to deliver on client contracts; (7) that, as a result of the foregoing, the Company’s clients would be dissatisfied and the relationships would be impaired; and (8) 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 wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until November 15, 2019 to request that the court appoint them lead plaintiff.