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

Pomerantz Law Firm Issues Class Action Lawsuit Alert for Xerox Holdings Shareholders

In a recent announcement, Pomerantz LLP has reminded shareholders of Xerox Holdings Corporation (NASDAQ: XRX) about the pending class action lawsuit that affects their investments. The firm is actively seeking individuals who have suffered losses due to alleged securities fraud involving the company. Investors who purchased or otherwise acquired Xerox securities during the Class Period are urged to come forward and may qualify to take part in this important legal action.

Background of the Case

On April 23, 2024, a stark announcement came from Xerox, revealing a significant downturn in its financial performance for the second quarter. The company reported a revenue drop of 12.4% on a year-over-year basis, amounting to $1.50 billion, and a net loss that swelled to -$113 million, marking a decline of $184 million compared to the previous year. Furthermore, their equipment sales witnessed an alarming decrease of 25.8%, down to just $290 million. The management attributed these disappointing figures to a strategy termed “geographic simplification,” and conceded that their “Reinvention” plan played a role in disrupting sales operations.

As a direct fallout from this news, Xerox's stock price plummeted by $1.66 per share, equivalent to a decline of 10.11%, closing at $14.76 on that trading day.

Later, on October 29, 2024, further bad news hit the company as it disclosed lesser-than-expected progress in enhancing sales force productivity, coupled with delays in launching two new products globally, which collectively contributed to its poor sales performance. In the third quarter, itself also saw underwhelming results with a 7.5% decrease in revenue to $1.53 billion, and a staggering net loss that ballooned to -$1.2 billion year-over-year. During an earnings call, COO John Bruno pointed to a “forecasting issue” as the culprit behind these delays, expressing the company’s initial over-expectation regarding product transitions.

Upon this release, Xerox's stock faced another blow, dropping by $1.79, 17.41% to close at $8.49 on that day.

This sequence of financial disappointments and strategic missteps has prompted the Pomerantz Law Firm to initiate the class action to represent the shareholders who may have been negatively impacted by these developments. Notably, investors have until January 18, 2025, to move the court for a Lead Plaintiff appointment, thereby allowing them to take the helm of this litigation if they qualify.

How to Get Involved

Shareholders wanting to engage with the ongoing lawsuit or seeking further information can reach out to Danielle Peyton at Pomerantz through email ([email protected]) or by phone (646-581-9980, toll-free at 888.4-POMLAW, Ext. 7980). When contacting the firm, it's advisable for shareholders to include essential details such as their mailing address, phone number, and specifics regarding the number of shares they acquired.

About Pomerantz LLP

Pomerantz LLP has a distinguished history spanning over 85 years, recognized as one of the leading firms specializing in securities fraud, corporate misconduct, and antitrust class actions. Founded by the late Abraham L. Pomerantz, the firm has successfully recovered billions on behalf of class members in past litigations. Armed with offices in major cities including New York, Chicago, and Los Angeles, Pomerantz remains committed to championing the rights of those adversely affected by securities fraud and corporate breaches of fiduciary duties. For further information, interested parties can visit Pomerantz Law Firm’s official website.

Conclusion

In conclusion, the recent class action lawsuit against Xerox Holdings represents critical news for its shareholders, highlighting the necessity for transparency and due diligence in corporate management practices. As the landscape continues to evolve, the role of firms like Pomerantz becomes pivotal in safeguarding investor rights and ensuring accountability within corporate governance.