Glancy Prongay & Murray LLP (“GPM”) announces that it has filed a class action lawsuit in the US District Court for the Southern Borough of New York entitled Morton v Leidos Holdings, Inc., et al. (Case # 1: 21-cv-01911) on behalf of any person or entity that between May 4, 2020 and February 23, 2020, has securities of Leidos Holdings, Inc. (“Leidos” or the “Company”) (NYSE : LDOS) purchased or otherwise obtained; 2021 inclusive (the “Class Period”). Plaintiff is pursuing claims under Sections 10 (b) and 20 (a) of the Securities Exchange Act of 1934 (the “Exchange Act”).
Investors are hereby notified that they have 60 days after such notification to appoint the court as the lead plaintiff in this lawsuit.
If you have suffered a loss on your Leidos investment or would like to inquire about whether you may be able to make claims to recover your loss under federal securities laws, you can find your contact information at https://www.glancylaw.com/cases / submit to Leidos-holdings -inc /. You can also contact Charles H. Linehan of GPM at 310-201-9150, toll free at 888-773-9224, or by email at Shareholder@glancylaw.com or on our website at www.glancylaw.com for more information about your rights.
On February 16, 2021, Spruce Point Capital Management LLC (“Spruce Point”) published a research report claiming, among other things, “Leidos may have fictitious sales of at least $ 100 million and characterize international sales of 355 to 367 MILLION. “The report also alleged the company had” hidden numerous product defects from investors, particularly faulty explosives detection systems at airports and borders. “
In that news, the company’s share price fell $ 2.58, or 2.4%, to close at $ 105.22 per share on February 16, 2021 in an unusually high trading volume.
On February 23, 2021, Leidos announced its fourth quarter and full year 2020 financial results in a press release. In it, the company reported fourth quarter revenue of $ 89 million related to the SD&A business, meaning the acquisition had only posted revenue of $ 163 million (or $ 326 million) after two full quarters -Dollars on an annual basis) and was thus well below the forecasted 500 million US dollars. The company expected cash flow of $ 850 million, well below analysts’ estimates of $ 1.083 billion.
The story goes on
In that news, the company’s stock price fell $ 10.29, or 9.91%, to close at $ 93.51 per share on February 23, 2021.
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 this confirms all of the major points made in our report.” “
In that news, the company’s share price fell $ 3.13, or 3.3%, to close at $ 90.38 per share on February 24, 2021 in an unusually high trading volume.
The complaint filed in this class action alleges that, throughout the collection period, the defendants made materially false and / or misleading statements and did not disclose material adverse facts about the company’s business, business and prospects. In particular, the Defendants have not notified investors: (1) that the alleged benefits of the Company’s acquisition of the Security Detection & Automation division of L3Harris were significantly overrated; (2) that Leidos products suffered from numerous product defects, including faulty explosion detection systems at airports, ports and borders; (3) that as a result of the foregoing, the Company’s financial results have been materially overvalued; and (4) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations and prospects were materially misleading and / or unfounded.
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If you purchased or otherwise acquired the Leidos Securities during the class period, you may request the court to appoint the lead plaintiff no later than 60 days after such notice. You don’t need to take any action at this point to be a member of the class. You can keep an attorney of your choice or take no action and remain an absent member of the class. If you would like to learn more about this promotion, or have any questions about this announcement or your rights or interests in relation to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, toll free at 888-773-9224, email email@example.com, or visit our website at www.glancylaw.com. When inquiring by email, please include your postal address, telephone number and the number of shares purchased.
This press release may be viewed as a solicitor’s advertisement in some jurisdictions under applicable laws and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210304006175/de/
Glancy Prongay & Murray LLP, Los Angeles
Charles H. Linehan, 310-201-9150 or 888-773-9224
1925 Century Park East, Suite 2100
Los Angeles, CA 90067