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RADNOR, PA / ACCESSWIRE / April 22, 2021 / The law firm of Kessler Topaz Meltzer & Check, LLP reminds investors of Leidos Holdings, Inc. (NYSE:LDOS) ("Leidos") that a securities fraud class action lawsuit has been filed on behalf of those who purchased or acquired Leidos securities between May 4, 2020 and February 23, 2021, inclusive (the "Class Period").
Investor Deadline Reminder: Investors who purchased or acquired Leidos securitiesduring the Class Period may, no later than May 5, 2021, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 or Adrienne Bell, Esq. (484) 270-1435; toll free at (844) 887-9500; via e-mail atinfo@ktmc.com; orclick https://www.ktmc.com/leidos-holdings-class-action-lawsuit?utm_source=PR&utm_medium=link&utm_campaign=leidos
Leidos is a science, engineering, and information technology company that provides services and solutions in the defense, intelligence, homeland security, civil and health markets, both domestically and internationally.
According to the complaint, on February 16, 2021, Spruce Point Capital Management LLC ("Spruce Point") published a research report, alleging, among other things that "Leidos is potentially covering up at least $100m of fictitious sales, mischaracterizing $355 - $367m of international revenue." Following this news, Leidos's share price fell $2.58, or 2.4%, to close at $105.22 per share on February 16, 2021.
Then, on February 24, 2021, Spruce Point highlighted that Leidos had "materially expanded" the risk disclosures in its annual report for the year ended December 31, 2020, which had been filed after the market closed on February 23, 2021. Following this news, Leidos's stock price fell $3.13, or 3.3%, to close at $90.38 per share on February 24, 2021.
The complaint alleges that, throughout the Class Period, the defendants failed to disclose to investors that: (1) the purported benefits of Leidos's acquisition of L3Harris Technologies' Security Detection and Automation businesses were significantly overstated; (2) Leidos's products suffered from numerous product defects, including faulty explosive detection systems at airports, ports, and borders; (3) as a result of the foregoing, Leidos's financial results were significantly overstated; and (4) as a result of the foregoing, the defendants' positive statements about Leidos's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.