A lawsuit was filed on behalf of investors in Xerox Corp (NYSE:XRX) shares over alleged securities laws violations and NYSE:XRX investors should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 11/01/2016 -- An investor, who purchased shares of Xerox Corp (NYSE:XRX), filed a lawsuit in New York over alleged violations of Federal Securities Laws by Xerox Corp in connection with certain allegedly false and misleading statements.
Investors who purchased shares of Xerox Corp (NYSE:XRX) have certain options and should contact the Shareholders Foundation at email@example.com or call 858-779-1554.
Theplaintiff alleges on behalf of purchasers of Xerox Corp (NYSE:XRX) common shares between April 23, 2012 and October 23, 2015, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between April 23, 2012 and October 23, 2015 the Defendants violated provisions of the Securities Exchange Act of 1934 by issuing allegedly false and misleading statements regarding the profitability and growth prospects of an important software product called Health Enterprise—designed to assist state agencies administer their respective Medicaid programs.
The plaintiff says that beginning in 2009, as Xerox Corp's hardware products became less profitable, it embarked on a new corporate strategy to transition into more of a computer services-related company and that as part of Xerox's computer services transition strategy, Xerox Corp acquired Affiliated Computer Services, Inc. for $6.4 billion in February 2010.
Through the acquisition, Xerox Corp took over the Health Enterprise product, which provides software solutions for states to manage all aspects of their contemporary Medicaid programs and to do so in accordance with government rules and regulations.
The plaintiff claims that the Defendants' statements between April 23, 2012 and October 23, 2015 pertaining to the profitability and growth prospects of the Health Enterprise business were materially false and misleading because Defendants failed to disclose that Xerox Corp's existing Health Enterprise projects were experiencing major delays and cost overruns, that Xerox Corp would be unable to deliver Health Enterprise implementations at sustainable profits, and that as a result, Xerox Corp's positive statements about its business, operations, and prospects lacked a reasonable basis.
In October 2013 Xerox Corporation said the Securities and Exchange Commission ("SEC") has launched an investigation into certain accounting practices at its Affiliated Computer Services Inc. unit.
The plaintiff says that beginning in late 2014, this truth began to be revealed in a series of disclosures that exposed implementation delays, cost overruns, and customer disputes.
In 2014, two former Affiliated Computer Services Inc executives settled with the SEC over claims that they padded Affiliated Computer Services Inc's revenue by arranging to redirect pre-existing transactions through the company.
On Jan. 30, 2015, Xerox Corp reported its financial results for the full year 2014. Xerox Corp reported that its annual Total Revenue declined from over $20 billion in 2013 to over $19.54 billion in 2014 and that its Net Income declined from over $1.15 billion in 2013 to over $1.01 billion in 2014.
Then in October 2015, two key state agencies terminated Health Enterprise contracts with Xerox Corp.
The plaintiff says that by then, Xerox Corp. had taken more than $500 million in related asset write-downs.
On Jan. 29, 2016, Xerox Corp reported its financial results for the full year 2015. Xerox Corp reported that its annual Total Revenue declined from over $19.54 billion in 2014 to over $18.04 billion in 2015 and that its Net Income declined from over $1.01 billion in 2014 to over $474 million in 2015.
Shares of Xerox Corp (NYSE:XRX) declined from as high as $14.32 per share in late 2014 to as low as $8.77 per share in February 2016.
Those who purchased shares of Xerox Corp have certain options and should contact the Shareholders Foundation.
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