Glancy Prongay & Murray LLP Initiates Securities Fraud Lawsuit Against Xerox Holdings.
Glancy Prongay & Murray LLP announces the initiation of a class action lawsuit in the United States District Court for the Southern District of New York, titled Wilson v. Xerox Holding Corporation, et al., Case No. 24-cv-8809. This action is brought on behalf of individuals and entities that purchased or otherwise acquired securities of Xerox Holdings Corporation during the period from January 25, 2024, to October 28, 2024, inclusive.
Investors are hereby informed that they have a period of 60 days from the date of this notice to file a motion with the Court to be appointed as lead plaintiff in this case. If you have experienced a loss on your investments in Xerox or wish to explore the possibility of pursuing claims to recover your losses under federal securities laws, you may submit your contact details at www.glancylaw.com/cases/Xerox-Holdings-Corporation/. Additionally, you can reach out to Charles H. Linehan of GPM at 310-201-9150, toll-free at 888-773-9224, or via email at [email protected]. For further information regarding your rights, please visit our website at www.glancylaw.com.
On April 23, 2024, prior to the market’s opening, the Company announced that its revenue for the second quarter of 2024 had decreased by 12.4% compared to the previous year, totaling $1.50 billion. Additionally, the net loss was reported at -$113 million, a reduction of $184 million year-over-year, while equipment sales experienced a decline of 25.8% year-over-year, amounting to $290 million.
The Company acknowledged that the decline was partly due to “geographic simplification.” Furthermore, it was revealed that the “Reinvention” plan had initially caused disruptions in sales operations; however, the Company reassured investors that it was beginning to observe positive outcomes from the new business unit-led operating model, particularly in terms of equipment order momentum.
In response to this announcement, the Company’s stock price dropped by $1.66, or 10.11%, closing at $14.76 per share on April 23, 2024, amid unusually high trading volume.
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On October 29, 2024, prior to the market’s opening, the Company announced that “lower-than-anticipated enhancements in sales force productivity” and “setbacks in the global introduction of two new products” had resulted in “sales underperformance.”
The Company reported that for the third quarter of 2024, its quarterly revenue decreased by 7.5% compared to the previous year, amounting to $1.53 billion, while the net loss narrowed to -$1.2 billion (a reduction of $1.3 billion year-over-year), and equipment sales fell by 12.2% year-over-year to $339 million.
During an accompanying earnings call, the Company’s Chief Operating Officer, John Bruno, clarified that the product delay stemmed from a “forecasting issue,” indicating that the Company “had higher expectations for selling through the older product,” which needed to be “cleared out” to facilitate “those transitions.”
In response to this announcement, the Company’s stock price declined by $1.79, or 17.41%, closing at $8.49 per share on October 29, 2024, amid unusually high trading volume.
The class action complaint asserts that during the Class Period, the Defendants issued materially false and/or misleading statements and failed to reveal significant adverse information regarding the Company’s business, operations, and future outlook. In particular, the Defendants did not inform investors of the following: (1) following a substantial reduction in workforce, the Company’s salesforce underwent a reorganization involving new territory assignments and account coverage; (2) this reorganization led to disruptions in the productivity of the salesforce; (3) consequently, the Company experienced a decreased rate of sell-through for older products; (4) the challenges in clearing out older inventory would postpone the introduction of key products; (5) as a result, Xerox was likely to face diminished sales and revenue; and (6) due to these factors, the Defendants’ optimistic statements regarding the Company’s business, operations, and prospects were materially misleading and/or lacked a sound basis.
If you acquired Xerox securities during the Class Period, you have the opportunity to request the Court to appoint you as lead plaintiff within 60 days from the date of this notice. At this moment, no action is required to be considered a member of the Class; you may choose to engage legal counsel or opt to take no action and remain an absent member of the Class.
Glancy Prongay & Murray LLP is a leading national law firm specializing in securities class actions, shareholder derivative actions, and other complex litigation. Founded in 2007, the firm has built a reputation for representing investors, consumers, and employees in cases involving corporate fraud, financial misconduct, and violations of securities laws. With a commitment to protecting the rights of shareholders, Glancy Prongay & Murray has successfully recovered millions of dollars for clients through litigation and settlements. The firm is known for its in-depth legal expertise, innovative strategies, and dedication to achieving favorable outcomes for its clients. Based in Los Angeles, the firm has a national presence and is actively involved in high-profile cases across the United States.