#United States #New York #Class Action #Xerox Holdings #Pomerantz Law

Shareholder Alert: Class Action Lawsuit Filed Against Xerox Holdings Corporation

A significant legal development is in motion as Pomerantz LLP has announced a class action lawsuit against Xerox Holdings Corporation (NASDAQ: XRX). This lawsuit centers on allegations of securities fraud and other questionable business practices involving the company's management. An alert has been issued for shareholders who may have experienced losses related to their Xerox investments. Any affected parties are encouraged to reach out to attorney Danielle Peyton for guidance regarding their situation before the January 18, 2025 deadline to potentially become the Lead Plaintiff in this case.

Background of the Lawsuit

The class action lawsuit is built upon claims that Xerox, along with its officers and directors, may have engaged in fraudulent activities that misled investors. The lawsuit targets shareholders who purchased or acquired Xerox securities during the set Class Period. The implications of this legal action can be substantial, especially given the company's recent performance disclosures that have raised eyebrows among investors.

Financial Performance and Declines

Xerox's financial reports over the past months have indicated troubling trends. For instance, in April 2024, the company reported a 12.4% decline in quarterly revenue year-over-year, totaling $1.50 billion. A net loss of $113 million was also recorded, alongside equipment sales that fell nearly 26% to just $290 million. These declines were partly attributed to strategic changes within the company, including a move referred to as “geographic simplification,” which company officials admitted had initially disrupted their sales.

Following this disclosure, Xerox’s stock value took a hit, dropping 10.11% to close at $14.76 per share on April 23, 2024. This was just the beginning of a rough financial stretch, as further troubling news would emerge later in the year.

On October 29, 2024, Xerox disclosed that they encountered lower-than-expected improvements in their sales force's productivity, along with delays in launching two new products. The third quarter also reported a revenue decline of 7.5%, accumulating to $1.53 billion. Moreover, Xerox suffered a significant net loss of $1.2 billion, a drop of over $1.3 billion from previous reports. On this occasion, the stock plunged further, closing at $8.49 per share, reflecting an alarming 17.41% decrease.

Next Steps for Shareholders

Shareholders who believe they have suffered losses due to these circumstances are strongly advised to consider their legal options. The window to seek participation in the class action suit is closing quickly with the January 18, 2025 deadline approaching. Interested shareholders should gather relevant information, including their share purchase records, and reach out to Pomerantz LLP to begin the process.

Shareholders can keep abreast of developments by visiting Pomerantz's website for updates on the case and obtaining a copy of the complaint.

Pomerantz LLP carries a notable reputation within the realm of corporate litigation, solidifying its status as a leading firm in handling class actions related to securities fraud. Founded over 85 years ago, the firm continues to advocate for clients misled by corporate misconduct.

In conclusion, shareholders of Xerox would be wise to act quickly to safeguard their interests and explore their legal options amid these troubling allegations. For those wishing to join the class action or inquire about their investment losses, contacting Pomerantz LLP before the impending deadline could prove vital to their case.