According to the Complaint, DXC Technology Company purports to be a leader in the information technology (“IT”) services space, focusing on helping clients decrease IT infrastructure costs and advance to digital technology. DXC Technology was formed by the merger of Computer Sciences Corporation and the enterprise services business of Hewlett Packard Enterprises on April 3, 2017. The merger created one of the largest IT services companies in the industry.

The Complaint alleges that during the Class Period, Defendants made false and misleading statements and/or failed to disclose adverse information regarding the Company’s business and prospects. Specifically, Defendants failed to disclose that the Company had changed or planned to change the operations of its sales teams, deploying generalized sales teams as opposed to the specialized teams that were better capable of delivering specialized services to its clients; that the Company’s workforce optimization strategy of sharply reducing staff while reducing costs was resulting in a shortage of sales personnel who could execute on demand for services, thereby risking and ultimately losing sales and revenue opportunities; and that, as a consequence, the Company’s revenue and financial performance guidance for fiscal 2019 was without a reasonable basis.

On March 26, 2019, the Court issued an Order appointing Lead Plaintiffs and Counsel. Lead Plaintiffs filed a consolidated Complaint on April 15. Defendants filed a Motion to Dismiss the consolidated Complaint on May 15. On June 2, 2020, the Court issued an Order granting Defendants' Motion to Dismiss. On July 1, Lead Plaintiffs filed a notice appealing the Court's Dismissal Order. The Court of Appeals affirmed the District Court's Dismissal Order on December 1, 2021.