NEW YORK, Sept. 25, 2019 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C. reminds investors that class action lawsuits have been commenced on behalf of stockholders of DXC Technology Company (NYSE: DXC), Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI), FarFetch Limited (NYSE: FTCH), and Eldorado Resorts, Inc. (NASDAQ: ERI). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
DXC Technology Company (NYSE: DXC)
Class Period: Securities pursuant to and/or traceable to the company’s April 2017 registration statement and prospectus
Lead Plaintiff Deadline: November 15, 2019
In April of 2017 DXC was created when Hewlett Packard Enterprise Company’s Enterprise Services segment was spun off and merged with Computer Sciences Corporation. In conjunction with this transaction, DXC issued a registration and prospectus.
On February 6, 2019, a civil complaint was filed alleging that certain officers of the company were using cost-cutting efforts such as layoffs to inflate short-term financial metrics and that these efforts substantially decreased the company’s ability to deliver contractually obligated services to its clients.
On August 8, 2019, the company lowered its fiscal 2020 revenue guidance by $500 million compared to previously issued guidance.
On this news, the company’s share price fell $15.74, or over 30%, to close at $35.91 per share on August 9, 2019, thereby injuring investors.
The complaint, filed on September 16, 2019, 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. Specifically, defendants failed to disclose to investors: (1) that the planned “workforce optimization” plan involved implementing arbitrary quotas; (2) that the plan would cut thousands of jobs at the company; (3) that jobs that were particularly at risk of being cut were held by longer-tenured, knowledgeable, and highly compensated senior personnel; (4) that these job terminations were selectively timed to artificially inflate reported earnings and other financial metrics; (5) that, at the time of the merger, defendant Lawrie had forecasted plans for a $2.7 billion workforce reduction in the first year; (6) that, as a result of these workforce terminations, the company was unlikely to deliver on client contracts; (7) that, as a result of the foregoing, the company’s clients would be dissatisfied and the relationships would be impaired; and (8) 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.
On the date the complaint was filed, DXC stock traded as low as $32.34 per share, a 45% decline from the $59 per share price at the time of the spin-off and merger.
For more information on the DXC class action go to: https://bespc.com/dxc-2
Ollie’s Bargain Outlet Holdings, Inc. (NASDAQ: OLLI)
Class Period: June 6, 2019 to August 28, 2019
Lead Plaintiff Deadline: November 18, 2019
On August 28, 2019, Ollie’s reported that store sales decreased 1.7% during the second quarter of 2019. Further, Ollie’s disclosed that a “bottleneck issue” had existed in its supply chain “for most all of Q2” and was not corrected until “the last week of the quarter.”
On this news, shares of Ollie’s fell $21.41 per share, or over 27%, to close at $56.36 per share on August 29, 2019.
The complaint, filed on September 17, 2019, 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. Specifically, defendants failed to disclose to investors: (1) that the company suffered a supply chain issue that impacted the initial inventory available at new stores; (2) that, as a result, the company lacked sufficient inventory to meet demand at certain store locations; (3) that, as a result, the company’s comparable store sales were likely to decrease quarter-over-quarter; and (4) 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.
For more information on the Ollie’s class action go to: https://bespc.com/olli
FarFetch Limited (NYSE: FTCH)
Class Period: Securities purchased between September 21, 2018 and August 8, 2019 or pursuant to and/or traceable to the company’s September 2018 initial public offering (“IPO”).
Lead Plaintiff Deadline: November 18, 2019
The complaint, filed September 19, 2019, alleges that in the IPO registration statement and throughout the Class Period, defendants failed to disclose material adverse facts about the company’s operations and prospects. Specifically, defendants failed to disclose that: (1) the company would refuse to reduce merchandise prices to match the rest of the market; (2) this sub-optimal pricing strategy rendered the company’s platform highly susceptible to underpricing by competitors, despite what defendants touted as a “superior” platform; and (3) as a result, the company’s past and projected growth rates were foreseeably unsustainable. As a result of the foregoing, defendants’ statements about the company’s business strategy and growth prospects lacked a reasonable basis at all relevant times.
On or about September 24, 2018, FarFetch held its IPO in which it sold approximately 50 million shares of Class A common stock at a price of $20.00 per share.
On August 8, 2019, FarFetch reported a larger-than-expected loss of $89.6 million for second quarter 2019. The company also announced a $675 million acquisition of New Guards Group and that its Chief Operating Officer had resigned.
On this news, the company’s share price fell $8.12, or over 44%, to close at $10.13 per share on August 9, 2019. By the date this complaint was filed, the company’s stock was trading as low as $10.20 per share, a nearly 50% decline from the $20 IPO price.
For more information on the FarFetch class action go to: https://bespc.com/ftch
Eldorado Resorts, Inc. (NASDAQ: ERI)
Class Period: March 1, 2019 to September 2, 2019
Lead Plaintiff Deadline: November 22, 2019
On September 3, 2019, Eldorado revealed that CEO Tom Reeg, president and chief operating officer Anthony Carano, executive chairman Gary Carano, and director James Hawkins had received subpoenas in May pertaining to an ongoing investigation of the executives trading in an undisclosed company tied to James Hawkins.
On this news, Eldorado’s share price fell $3.09, or over 8%, to close at $35.42 on September 3, 2019.
The complaint, filed on September 23, 2019, alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) several of the company’s executive officers, including CEO Thomas Reeg, engaged in improper trading with respect to the securities of another publicly-traded company; and (2) as a result, defendants’ statements about Eldorado’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
For more information on the Eldorado class action go to: https://bespc.com/eri
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information about Bragar Eagel & Squire, P.C. please go to www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contacts
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com