Bernstein Liebhard, a nationally acclaimed investor rights law firm, reminds investors of the deadline to file a lead plaintiff motion in a securities class action lawsuit that has been filed on behalf of investors who purchased or acquired the securities of Leidos Holdings, Inc. from May 4, 2020 through February 23, 2021 (the “Class Period”). The lawsuit filed in the United States District Court for the Southern District of New York alleges violations of the Securities Exchange Act of 1934.
If you purchased Leidos Holdings securities, and/or would like to discuss your legal rights and options please visit Leidos Holdings Shareholder Class Action Lawsuit or contact Matthew E. Guarnero toll free at (877) 779-1414 or MGuarnero@bernlieb.com
On February 16, 2021, Spruce Point Capital Management LLC published a research report alleging that “Leidos is potentially covering up at least $100m of fictitious sales, mischaracterizing $355–367m of international revenue.” The report set forth additional allegations that the Company was “concealing numerous product defects from investors, notably faulty explosive detection systems at airports and borders.”
On this news, Leidos Holdings’ stock price fell $2.58 per share, or 2.4%, to close at $105.22 per share on February 16, 2021 on usually high trading volume.
On February 23, 2021, Leidos Holding issued a press release announcing its fourth quarter and full year 2020 financial results. The Company reported $89 million in revenue related to the SD&A businesses for the fourth quarter, which meant that after two full quarters, the acquisition only generate $163 million in sales, falling short of projected $500 million sales. The Company expected cash flow of $850 million, well below analyst estimates of $1.083 billion.
On this news, Leidos Holdings’ stock price fell $10.29 per share, or 9.91%, to close at $93.51 per share on February 23, 2021.
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Defendants failed to disclose: (1) that the purported benefits of the Company’s acquisition of L3Harris’ Security Detection & Automation businesses were significantly overstated; (2) that Leidos Holdings’ products suffered from numerous product defects, including fault explosive detection systems at airports, ports, and borders; (3) 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.
If you wish to serve as lead plaintiff, you must move the Court no later than May 3, 2021. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased Leidos Holdings securities, and/or would like to discuss your legal rights and options please visit https://www.bernlieb.com/cases/leidosholdingsinc-ldos-shareholder-class-action-lawsuit-fraud-stock-375/apply/ or contact Matthew E. Guarnero toll free at (877) 779-1414 or MGuarnero@bernlieb.com
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
Matthew E. Guarnero
Bernstein Liebhard LLP