Title: In re Conduent Inc. Securities Litigation, No. 2:19-cv-08237
Court: United States District Court for the District of New Jersey
Company Name: Conduent Inc.
Securities: CNDT (NASDAQ)
Class Period: February 21, 2018 to November 6, 2018
Wolf Popper is counsel to lead plaintiff the Employees’ Retirement System of the Puerto Rico Electric Power Authority and additional counsel to the proposed Class in the securities class action brought against Conduent Inc., its CEO Ashok Vermui, and its CFO Brian Webb-Walsh, in the United States District Court for the District of New Jersey.
The Amended Complaint alleges, among other things, that the defendants violated the Securities Exchange Act of 1934 by making materially false and misleading statements or failing to disclose material facts concerning Conduent’s progress with the company’s strategic transformation process, specifically that Conduent had addressed problems with its legacy IT infrastructure and IT vendors.
On November 7, 2018, defendants revealed that issues caused by the company’s outdated IT infrastructure and suboptimal performance by a legacy IT vendor had materially impacted Conduent’s core tolling business. Consequently, Conduent reported revenue and earnings per share below analyst’s expectations and cut its fiscal year 2018 revenue guidance 2.5% and adjusted EBIDTA guidance 4.4%. As a result of these revelations, on November 7, 2018, Conduent’s common stock price fell $5.60 per share, or over 29%, to close at $13.62 per share on very heavy volume.
On June 5, 2020, the Court denied defendants’ motion to dismiss the amended complaint. The action is pending.
For further information about this case, contact:
Robert C. Finkel
Joshua W. Ruthizer
Philip M. Black