LEIDOS HOLDINGS ALERT: Bragar Eagel & Squire, P.C. Announces That a Class Action Lawsuit Has Been Filed Against Leidos Holdings, Inc. and Encourages Investors to Contact the Firm
NEW YORK–(BUSINESS WIRE) – Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, announces a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of investors who bought Leidos Holdings, Inc. NYSE: LDOS) securities between May 4, 2020 and February 23, 2021 inclusive (the “Class Period”). Investors have until May 3, 2021 to apply to the court for appointment as the lead plaintiff in the lawsuit.
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On February 16, 2021, Spruce Point Capital Management LLC (“Spruce Point”) published a research report claiming, among other things, that “Leidos may have fictitious sales of at least US $ 100 million and international sales of 355 to 367 million . USD incorrectly characterized. “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 stock price fell $ 2.58, or 2.4%, to close at $ 105.22 per share on February 16, 2021.
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.
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 information in its annual report for the fiscal year ending December 31, 2020. Spruce Point tweeted, “We believe this confirms all of the key points in our report. ”
In that news, the company’s stock price fell $ 3.13, or 3.3%, to close at $ 90.38 per share on February 24, 2021.
The complaint, filed on March 4, 2021, alleges that throughout the teaching period, 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) that Defendants’ positive statements about the Company’s business, operations, and prospects as a result of the foregoing were materially misleading and / or were unfounded.
If you have purchased Leidos securities during the class period and suffered a loss, are a long-term shareholder, have information, want to learn more about these claims, or have questions about this announcement or your rights or interests in relation to these matters, please contact Brandon Walker, Melissa Fortunato or Marion Passmore by email at email@example.com, by phone at (212) 355-4648, or by completing this contact form. There are no costs or obligations for you.
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation in state and federal courts across the country. More information about the company can be found at www.bespc.com. Lawyer advertising. Previous results do not guarantee similar results.