Xerox Holdings Corporation (NASDAQ: XRX)

This lawsuit is for anyone who acquired securities in Xerox Holdings Corporation (NASDAQ: XRX) from January 25, 2024 through October 28, 2024.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the Law Offices of Howard G. Smith believes that the Company misled investors by failing to timely inform investors that, after a large workforce reduction, the Company reorganized its salesforce resulting in salesforce productivity disruption and a lower rate of sell-through of older products.

On April 23, 2024, before the market opened, the Company revealed that for second quarter 2024, quarterly revenue was down 12.4% year-over-year to $1.50 billion, net loss fell to -$113 million (down $184 million year-over-year), and equipment sales declined 25.8% year-over-year to $290 million. The Company admitted, in part, “geographic simplification” had driven the year-over-year decline.  The Company also partially disclosed that its “Reinvention” plan had been “initially disruptive to sales operations” but assured investors it was “seeing the benefits of the new business unit-led operating model in equipment order momentum.” On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on October 29, 2024, before the market opened, the Company revealed “lower-than-expected improvements in sales force productivity” and “delays in the global launch of two new products” had led to “sales underperformance.” The Company disclosed that for third quarter 2024, quarterly revenue was down 7.5% year-over-year to $1.53 billion, net loss fell to -$1.2 billion (down $1.3 billion year-over-year), and equipment sales declined 12.2% year over year to $339 million. In a corresponding earnings call, the Company’s Chief Operating Officer John Bruno revealed the product delay was in fact a “forecasting issue” where the Company “had higher expectations that we were going to flush through the older product” which it needed to “sell through” in order to “make those transitions.” On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Xerox Holdings Corporation (NASDAQ: XRX) from January 25, 2024 through October 28, 2024 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.