Notice of Lead Plaintiff Deadline for Shareholders in the Leidos Holdings, Inc. Class Action Lawsuit
SAN DIEGO–(BUSINESS WIRE) – Robbins Geller Rudman & Dowd LLP announces that a class action lawsuit has been filed in the southern borough of New York between May 4, 2020 and February 23 on behalf of the buyers of the securities of Leidos Holdings, Inc. (NYSE: LDOS) . 2021 inclusive (the “Class Period”). The case is entitled Morton v Leidos Holdings, Inc., No. 21-cv-01911, and is assigned to Judge Mary Kay Vyskocil. Leidos’ class action lawsuit accuses Leidos and some of its executives of violating the Securities Exchange Act of 1934.
The Private Securities Litigation Reform Act of 1995 allows any investor who purchased Leidos securities during the class period to seek appointment as the lead plaintiff in the Leidos class action. A lead plaintiff is generally the applicant with the greatest financial interest in the relief sought by the alleged class, which is also typical and appropriate for the alleged class. A lead plaintiff is acting on behalf of all other class members in leading the class action lawsuit against Leidos. The lead plaintiff can choose a law firm of their choice to bring the Leidos class action lawsuit. An investor’s ability to participate in a possible future recovery of the Leidos class action lawsuit does not depend on whether they are the lead plaintiff. If you would like to stand as the lead plaintiff in the Leidos class action or have any questions about your rights in relation to the Leidos class action, please include your information here or contact attorney Michael Albert von Robbins Geller at 800 / 449-4900 or 619 / 231-1058 or by email to firstname.lastname@example.org. Lead plaintiff motions for the Leidos class action lawsuit must be filed with the court by May 3, 2021 at the latest.
Leidos is a science, engineering and information technology company that provides defense, intelligence, homeland security, civil law and health services and solutions at home and abroad.
The Leidos class action alleges that throughout the classroom, the defendants made false and / or misleading statements and / or failed to disclose that: (i) the alleged benefits of Leidos ‘acquisition of L3Harris’ security detection and automation businesses (” SD & A Businesses “)”) goods clearly overvalued; (ii) Leidos products suffered from numerous product defects, including defective explosion detection systems at airports, ports and borders. (iii) As a result, Leidos’ financial results have been significantly overstated. and (iv) as a result, Defendants ‘positive statements about Leidos’ business, business and prospects were materially misleading and / or unfounded.
On February 16, 2021, Spruce Point Capital Management LLC published a research report claiming, among other things, that “Leidos may have fictitious sales of at least USD 100 million and incorrectly characterize international sales of USD 355 to 367 million”. The report also alleged that Leidos had “hidden numerous product defects from investors, particularly faulty explosives detection systems at airports and borders”. In the news, Leidos’ share price fell.
On February 23, 2021, Leidos announced its fourth quarter and full year 2020 financial results in a press release. In it, Leidos reported fourth quarter revenue of $ 89 million related to the SD&A businesses, meaning the acquisition had only posted revenue of $ 163 million (or $ 326 million) after two full quarters. Dollars on an annual basis), well below the forecasted $ 500 million. Leidos expected cash flow of $ 850 million, well below analysts’ estimates of $ 1.083 billion. In the news, Leidos’ share price fell nearly 10%.
Finally, on February 24, 2021, Spruce Point emphasized that Leidos had “significantly expanded” the risk warnings in its annual report for the fiscal year ending December 31, 2020. Spruce Point tweeted, “We believe these are all key points in our report.” On the news, Leidos’ share price fell again, causing further damage to investors.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms serving investors in class action lawsuits. With 200 attorneys in 9 law firms, Robbins Geller has filed many of the largest securities lawsuits in history. For seven consecutive years, ISS Securities Class Action Services has ranked the firm as one of the world’s leading law firms in its annual SCAS Top 50 report, both for amount recovered on behalf of shareholders and total number of class action lawsuits. Robbins Geller’s lawyers helped shape securities laws and reclaimed tens of billions of dollars on behalf of injured victims. In addition to securing financial repayments for duped investors, Robbins Geller specializes in implementing corporate governance reforms that will help improve financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by the courts, professional associations and the media as the leading attorneys in the industry. Please visit http://www.rgrdlaw.com for more information.