#United States #New York #Xerox #Securities Law #Faruqi & Faruqi

Faruqi & Faruqi, LLP Investigates Xerox Holdings Corporation

Faruqi & Faruqi, LLP, a prominent national securities law firm, has launched an investigation into Xerox Holdings Corporation, also known simply as Xerox. This investigation is aimed at assessing potential claims on behalf of investors who have experienced losses exceeding $75,000 due to various operational and financial issues related to the company.

Background on Xerox Holdings Corporation

Founded in 1906, Xerox has long been regarded as a stalwart in the document technology sector, providing a range of printing and digital services to organizations worldwide. However, recent developments have prompted scrutiny regarding its financial and operational stability, which are now under investigation following a series of concerning disclosures by the company.

Key Allegations

The investigation primarily revolves around allegations that Xerox and its executives may have violated federal securities laws. Specifically, the firm is looking into claims related to misleading statements made by the company, as well as failures to disclose critical information about its operations. Some reported failures include:
- A significant restructuring of its sales force following a major workforce reduction.
- Disruptions to sales force productivity as a result of the new organization.
- A decline in sales and revenue leading from difficulties in clearing out older products, thereby delaying the launch of essential offerings.

These factors raised questions regarding the accuracy of optimistic statements previously issued by the company about its business health.

Financial Disclosures

Recent financial disclosures from Xerox have shown a troubling trend. In its quarterly report for Q2 2024, the company noted a staggering year-over-year revenue decline of 12.4%, with net losses recorded at $113 million. Furthermore, equipment sales hit a drastic low with a 25.8% decline compared to the previous year. The company's management attributed some of these setbacks to its ongoing 'Reinvention' plan, which they admitted had been disruptive to sales operations. This was a stark contrast to their initial assurances to investors claiming operational improvements were on the horizon.

Moreover, in their Q3 2024 report, Xerox revealed that lower-than-expected productivity improvements within the sales force, along with delays in introducing two new products on a global scale, contributed significantly to their continued sales underperformance. This led to a further staggering revenue decrease of 7.5% year-over-year and a net loss of $1.2 billion—the loss was up by $1.3 billion from the previous year. This announcement resulted in a substantial drop in Xerox's stock price, highlighting investor concerns and the effectiveness of the company's strategic initiatives.

Seeking Recovery

Faruqi & Faruqi, LLP is encouraging affected investors to take proactive measures. Investors suffering losses exceeding $75,000 between January 25, 2024, and October 28, 2024, are invited to explore their legal rights and potential avenues for recovery. Those interested can reach out directly to the firm's securities litigation partner, Josh Wilson, by calling 877-247-4292 or 212-983-9330 (Ext. 1310).

Conclusion

As the deadline for seeking lead plaintiff status in a federal securities class action against Xerox approaches on January 21, 2025, this investigation could have significant implications for investors and the company itself. Faruqi & Faruqi, LLP stands ready to provide support to those wishing to hold the company accountable for its actions and recover losses sustained during this tumultuous period.

For further updates and information, readers can visit Faruqi & Faruqi's website or connect with them through their social media platforms. It's imperative for investors to remain informed and engaged during this challenging phase for Xerox Holdings Corporation.