|Company Name||Amdocs Limited|
|Class Period||December 13, 2016 to March 30, 2021|
|Lead Plaintiff Motion Deadline||June 08, 2021|
On March 31, 2021, before markets opened, Jehoshaphat Research published a report alleging that Amdocs overstated its profits, evidenced by steady parent profits despite declining subsidiary profits. The report also noted there was a concerning pattern of reputable auditors resigning, only to be replaced by "scandal-plagued or tiny shops." Furthermore, the report alleged that the Company "window-dressed" its balance sheets to keep its large borrowing a secret, and former employees and direct competitors corroborated the findings, including a former American Amdocs executive, who stated, "The US business was declining at a rate of [around] 7% annually . . . but then we would see the company [publish results that] say North America is stable."
On this news, Amdocs’ stock price fell $9.19 per share, or 11.58%, to close at on March 30, 2021 to open at $70.15 on March 31, 2021.
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 that: (1) Amdocs overstated its profits, cash, and liquidity, while understating its debt; (2) Amdocs concealed its large borrowing; (3) while Amdocs' reported results showed that its North American business was stable, that business was actually deteriorating annually, in part because the Company was losing AT&T as a customer; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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