The Shareholders Foundation announced that an investor in NYSE:XRX shares filed a lawsuit over alleged violations of Federal Securities Laws by Xerox Corp.
Investors who purchased shares of Xerox Corp (NYSE:XRX) have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
The plaintiff claims that between April 23, 2012 and October 23, 2015 the Defendants violated provisions of the Securities Exchange Act of 1934 by issuing allegedly false and misleading statements regarding the profitability and growth prospects of an important software product called Health Enterprise—designed to assist state agencies administer their respective Medicaid programs.
The plaintiff says that beginning in 2009, as Xerox Corp’s hardware products became less profitable, it embarked on a new corporate strategy to transition into more of a computer services-related company and that as part of Xerox’s computer services transition strategy, Xerox Corp acquired Affiliated Computer Services, Inc. for $6.4 billion in February 2010.
Through the acquisition, Xerox Corp took over the Health Enterprise product, which provides software solutions for states to manage all aspects of their contemporary Medicaid programs and to do so in accordance with government rules and regulations.
The plaintiff claims that the Defendants’ statements between April 23, 2012 and October 23, 2015 pertaining to the profitability and growth prospects of the Health Enterprise business were materially false and misleading because Defendants failed to disclose that Xerox Corp’s existing Health Enterprise projects were experiencing major delays and cost overruns, that Xerox Corp would be unable to deliver Health Enterprise implementations at sustainable profits, and that as a result, Xerox Corp’s positive statements about its business, operations, and prospects lacked a reasonable basis.
In October 2013 Xerox Corporation said the Securities and Exchange Commission (“SEC”) has launched an investigation into certain accounting practices at its Affiliated Computer Services Inc. unit.
The plaintiff says that beginning in late 2014, this truth began to be revealed in a series of disclosures that exposed implementation delays, cost overruns, and customer disputes.
Those who purchased NYSE:XRX shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com