San Diego, CA -- (SBWIRE) -- 03/16/2021 -- An investor, who purchased shares of Leidos Holdings, Inc. (NYSE: LDOS), filed a lawsuit over alleged violations of Federal Securities Laws by Leidos Holdings, Inc.

Investors who purchased shares of Leidos Holdings, Inc. (NYSE: LDOS) have certain options and for certain investors are short and strict deadlines running. Deadline: May 3, 2021. NYSE: LDOS investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Reston, VA based Leidos Holdings, Inc. provides services and solutions in the defense, intelligence, civil, and health markets in the United States and internationally.

On February 16, 2021, Spruce Point Capital Management LLC ("Spruce Point") published a research report, alleging, among other things that "Leidos is potentially covering up at least $100m of fictitious sales, mischaracterizing $355 - $367m of international revenue." The report also alleged that the Company was "concealing numerous product defects from investors, notably faulty explosive detection systems at airports and borders."

On February 23, 2021, Leidos Holdings, Inc announced its fourth quarter and full year 2020 financial results in a press release. Therein, the Company reported $89 million revenue related to the SD&A businesses for the fourth quarter, meaning that after two full quarters, the acquisition generated only $163 million in sales (or $326 million annualized), falling well short of projected $500 million sales. The Company expected cash flow of $850 million, well below analyst estimates of $1.083 billion.

On February 24, 2021, Spruce Point highlighted that Leidos had "materially expanded" the risk disclosures in its annual report for the year ended December 31, 2020. Spruce Point tweeted: "We believe it is validating all the major points of our report."

On this news, the Company's stock price fell $3.13, or 3.3%, to close at $90.38 per share on February 24, 2021, on unusually heavy trading volume.

The plaintiff claims that between May 4, 2020 and February 23, 2021, the Defendants failed to disclose to investors that the purported benefits of the Company's acquisition of L3Harris' Security Detection & Automation businesses were significantly overstated, that Leidos' products suffered from numerous product defects, including faulty explosive detection systems at airports, ports, and borders, that, as a result of the foregoing, the Company's financial results were significantly overstated, and that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Those who purchased shares of Leidos Holdings, Inc. (NYSE: LDOS) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.