NEW YORK, March 11, 2021 (GLOBE NEWSWIRE) -- Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international shareholder and consumer rights litigation firm, announces the filing of a class action lawsuit against Leidos Holdings, Inc. (“Leidos” or the “Company”) (NYSE: LDOS) and certain of its officers, alleging violations of federal securities laws. If you purchased Leidos securities between May 4, 2020 and February 23, 2021, inclusive (the “Class Period”), and have suffered a loss, you are encouraged to contact attorney Joe Pettigrew for additional information at (844) 818-6982 or jpettigrew@scott-scott.com.
Leidos is a science, engineering, and information technology company that provides services and solutions in the defense, intelligence, homeland security, civil and health markets, both domestically and internationally.
The lawsuit alleges, among other things, that the Company made materially false and/or misleading statements and/or failed to disclose: (1) that the purported benefits of the Company’s acquisition of L3Harris Technologies’s Security Detection & Automation (“SD&A”) businesses were significantly overstated; (2) that Leidos’s products suffered from numerous product defects, including faulty explosive detection systems at airports, ports, and borders; and (3) that, as a result of the foregoing, the Company’s financial results were significantly overstated.
Throughout the Class Period the Company touted its revenue, sales figures, and the state of its internal control over financial reporting. On February 16, 2021, Spruce Point published a report, alleging, among other things that “Leidos was potentially covering up at least $100 [million] of fictitious sales, mischaracterizing $355-$367 [million] of 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 this news, the price of Leidos’s common stock fell $2.58, or almost 2.4%, to close at $105.22 per share on February 16, 2021.
On February 23, 2021, the Company reporting on its SD&A business stated that it fell $163 million short of its projected sales goal of $500 million.
On this news, the price of Leidos’s stock fell by $10.29, or 9.91%, to close at $93.51 per share on February 23, 2021.
On February 23 and 24, 2021, Spruce Point tweeted, highlighting materially expansions the Company had made to its risk disclosure statement in its annual report for the year ended December 31, 2020.
On this news, the price of Leidos’s stock fell by $3.13, or 3.3%, to close at $90.38 per share on February 24, 2021.
What You Can Do
If you purchased Leidos securities between May 4, 2020 and February 23, 2021, or if you have questions about this notice or your legal rights, you are encouraged to contact attorney Joe Pettigrew at (844) 818-6982 or jpettigrew@scott-scott.com. The lead plaintiff deadline is May 3, 2021.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.
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CONTACT:
Joe Pettigrew
Scott+Scott Attorneys at Law LLP
230 Park Avenue, 17th Floor, New York, NY 10169-1820
(844) 818-6982
jpettigrew@scott-scott.com