November 21, 2016
Lundin Law PC announced its intention of bringing a lawsuit against Xerox.
Yahoo reported that the law firm is acting for investors in Xerox and calling on others to join the class action who invested between 23 April 2012 and 23 October 2015 “concerning possible violations of federal securities laws”. The complaint is the same as previous class actions reported by The Recycler in that “Xerox repeatedly touted its new software product, Health Enterprise, as an important growth area for the Company, which would operate at low cost and high profit margin”.
The class action also added that the statements made by Xerox on profitability and growth were “materially false and misleading” because the OEM failed to reveal that the “existing Health Enterprise projects were experiencing major delays and cost overruns”, which meant that Xerox would not be able to deliver sustainable profits and as a result “the Company’s statements about its business, operations, and prospects lacked a reasonable basis”.
The company’s third quarter results last year (https://www.therecycler.com/posts/xerox-anticipates-quarterly-loss/) were “disappointing” due to “costs associated with the implementation of Health Enterprise and the termination of Health Enterprise contracts with two state agencies”, and the action added that when this news was announced Xerox shares fell and caused investors harm.
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