HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Alerts Investors in Leidos Holdings (LDOS) to Securities Class Action and Investor Deadline, Encourages Investors with Losses to Contact Firm

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HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Alerts Investors in Leidos Holdings (LDOS) to Securities Class Action and Investor Deadline, Encourages Investors with Losses to Contact Firm

San Francisco, Calif .– (Newsfile Corp. – April 1, 2021) – Hagens Berman urges Leidos Holdings, Inc. (NYSE: LDOS) investors to file their losses now. A securities fraud class lawsuit has been filed and certain investors may have valuable claims.

Teaching time: May 4, 2020 – February 23, 2021

Lead plaintiff deadline: May 3, 2021

Visit: www.hbsslaw.com/investor-fraud/LDOS

Contact an attorney now: [email protected]

844-916-0895

Leidos Holdings, Inc. (LDOS) class action lawsuit against securities fraud:

The complaint focuses on the accuracy of the defendants ‘statements regarding Leidos’ SD&A business, which the company acquired from L3Harris Technologies in May 2020 for $ 1 billion and touted as convincing of strategic and operational advantages.

In particular, Defendants have significantly overestimated the benefits of the acquisition and failed to disclose that Leidos’ products suffered from numerous product defects, including faulty explosives detection systems at airports, ports and borders. As a result, the company’s financial results have been significantly overvalued.

The truth was revealed through a series of partial disclosures that began on February 16, 2021 when analyst Spruce Point released a scathing report concluding that Leidos paid $ 1 billion for the SD&A acquisition ” wasted “. Spruce Point stated, “We believe that Leidos may have fictitious sales of at least $ 100 million, incorrectly characterizing international sales of $ 355 million to $ 367 million.” Spruce Point also claimed that the company is “hiding numerous product defects from investors, particularly faulty explosives detection systems at airports and borders”. Spruce Point also cautions that management may intentionally inflate certain Leidos financial metrics, including operating cash flow and organic sales growth, to hide the pressures placed on investors.

Then, on February 23, 2021, Leidos released mixed financial results for the fourth quarter of 2020 and disappointing outlook for 2021, including led sales and EPS, well below analyst consensus. On the same day, Spruce Point highlighted the poor outlook for 2021 and noted a discrepancy between SD&A accounting and tweeted. “[t]its asset is a total black box. “

The story goes on

Finally, on February 24, 2021, Spruce Point emphasized that Leidos had “significantly expanded” its risk warnings in its 2020 annual report and tweeted.[w]We believe it confirms all the important points in our report. “

In the news, several analysts have lowered their price targets on Leidos shares. For example, on February 26, 2021, Jefferies lowered its target price from $ 125 to $ 115, and on March 10, 2021, Morgan Stanley reportedly lowered its target price from $ 113 to $ 105.

“We’re focusing on investor losses and proving that Leidos has misled investors about the SD&A business,” said Reed Kathrein, the Hagens Berman partner who led the investigation.

If you are a Leidos investor, click here to discuss your legal rights with Hagens Berman.

Whistleblowers: Individuals with nonpublic information about Leidos should consider their options to help with the investigation or use the SEC whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards of up to 30 percent for each successful SEC recovery. For more information, call Reed Kathrein at 844-916-0895 or send an email to [email protected]

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About Hagens Berman
Hagens Berman is a national law firm with eight offices in eight cities across the country and over eighty attorneys. The firm represents investors, whistleblowers, employees and consumers in complex legal disputes. More information about the company and its achievements can be found at hbsslaw.com. For the latest news, visit our newsroom or follow us on Twitter @classactionlaw.

Contact:
Reed Kathrein, 844-916-0895

The source version of this press release can be found at https://www.newsfilecorp.com/release/79078