DXC Technology Company

On August 3, 2022, DXC released disappointing financial results for the first quarter of fiscal year 2023, attributing it to “cost optimization efforts [moving] at a slower pace than anticipated.” On this news, DXC’s stock price fell $5.37, or 17%, to close at $26.15 per share on August 2, 2022, thereby injuring investors.

Then, on December 20, 2023, DXC announced the sudden departure of its CEO and Chairman of the Board. On this news, DXC’s stock price fell $3.04, or 12.1%, to close at $21.99 per share on December 20, 2023.

Then, on May 16, 2024, DXC’s new CEO stated that “the previous restructurings did not set a real, clean, solid, fully integrated baseline for profitable growth” because the systems that were acquired over time were “never integrated, never deduped,” and admitted that the Company was “not [a] fully functional organization.” Additionally, the Company disclosed that it would need to spend an additional $250 million to achieve the restructuring and integration process that it had previously claimed to have been successfully implementing. On this news, DXC’s stock price fell $3.36, or 16.9%, to close at $16.52 per share on May 17, 2024, thereby injuring investors further.

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) the Company had reduced restructuring and transaction, separation, and integration costs during the Class Period by curbing the Company-wide “transformation” and had thereby simply deferred costs that DXC would ultimately need to spend to finally implement the restructuring that it claimed to be successfully addressing during the Class Period; and (2) 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.