(MENAFN- GlobeNewsWire - Nasdaq) SAN DIEGO, Nov. 24, 2024 (GLOBE NEWSWIRE) -- Robbins LLP reminds investors that a class action was filed on behalf of all persons and entities that purchased or otherwise acquired Xerox Holdings Corporation (NASDAQ: XRX) securities between January 25, 2024 and October 28, 2024. Xerox and its subsidiaries offer workplace technology that integrates hardware, services, and software for enterprises in the Americas, and internationally.
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The Allegations: Robbins LLP is Investigating Allegations that Xerox Holdings Corporation (XRX) Misled Investors Regarding its Business Prospects
According to the complaint, during the class period, defendants failed to disclose to investors that: (1) after a large workforce reduction, the Company's salesforce was reorganized with new territory assignments and account coverage; (2) as a result, the Company's salesforce productivity was disrupted; (3) as a result, the Company had a lower rate of sell-through of older products; (4) the difficulties in flushing out older product would delay the launch of key products; and (5) therefore, Xerox was likely to experience lower sales and revenue.
Plaintiff alleges that on October 29, 2024, Xerox revealed“lower-than-expected improvements in sales force productivity” and“delays in the global launch of two new products” had led to“sales underperformance.” The Company disclosed that for third quarter 2024, quarterly revenue was down 7.5% year-over-year to $1.53 billion, net loss fell to -$1.2 billion (down $1.3 billion year-over-year), and equipment sales declined 12.2% year over year to $339 million. In a corresponding earnings call, the Company's COO revealed the product delay was in fact a“forecasting issue” where the Company“had higher expectations that we were going to flush through the older product” which it needed to“sell through” in order to“make those transitions.” On this news, the Company's share price fell $1.79, or 17.41%, to close at $8.49 per share on October 29, 2024.
What Now : You may be eligible to participate in the class action against Xerox Holdings Corporation. Shareholders who want to serve as lead plaintiff for the class must submit their application to the court by January 21, 2025. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here .
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP : Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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