DXC Technology is facing a class-action lawsuit for allegedly misleading investors about its financial health and ability to integrate previously acquired companies ¹ ² ³ ⁴. The lawsuit claims that DXC Technology's "transformation journey" was not as successful as the company claimed, and that it had only reduced costs by limiting its integration efforts. The company's stock price has fallen significantly as a result of these disclosures. The lawsuit seeks to represent all persons and entities that purchased or acquired DXC Technology common stock between May 26, 2021, and May 16, 2024.
Key allegations and events include:
- DXC Technology's August 3, 2022, report of disappointing first-quarter results, which caused the stock price to decline by 17% ¹ ² ³ ⁴.
- The company's admission on May 16, 2024, that previous restructurings did not set a solid baseline for profitable growth, and that it would need to spend an additional $250 million to achieve the restructuring and integration process ¹ ² ³ ⁴.
- The sudden departure of CEO and board chair Michael Salvino in December 2023, which also contributed to the stock price decline ¹.