SAN FRANCISCO, April 10, 2021 (GLOBE NEWSWIRE) – Hagens Berman urges Amdocs Limited (NASDAQ: DOX) Investors with significant losses can file their losses now.
Amdocs Limited (NASDAQ: DOX) class action lawsuit against securities fraud:
The complaint alleges that the defendants misrepresented and omitted material facts including: (i) Amdocs overestimated its profits, cash and liquidity while underestimating its debts; (ii) Amdocs has kept silent about its large borrowing; (iii) While the results reported by Amdocs showed that North American business was stable, business actually deteriorated annually, in part because the company lost AT&T as a customer; and (iv) as a result, the Company’s public statements at all relevant times have been materially false and misleading.
The complaint alleges that the truth was revealed on March 31, 2021 when Josaphat Research published a damning report, “Where did Amdocs’ profits and auditors go?” In which it concluded that Amdocs ” a massive financial deception ”and“ the stock is not investable. “
Based on a review of filings by international Amdocs subsidiaries overseas, Jehoshaphat claims Amdocs overestimated profits by up to 50%, reported profit margins are “wildly” inflated, and about 1/3 of Amdocs reported cash is not available for use. Josaphat reported that surveys of former employees and direct competitors corroborated his findings that Amdocs “has been losing business for years but is making up for those losses by inflating financial data, sometimes to a point that is no longer recognized by country managers”. Josaphat also raised concerns about the resignation of the auditors of the company’s subsidiaries over the past two years.
In response, Amdocs stock fell over 11% on March 31, 2021, wiping out hundreds of millions of dollars in shareholder value.
“We’re focusing on investor losses and proving that Amdocs has boiled up its books,” said Reed Kathrein, the Hagens Berman partner who led the investigation.
If you are an Amdocs investor and you are experiencing significant losses or have knowledge that may aid the company’s investigation, click here to discuss your statutory rights with Hagens Berman.
Whistleblower: Individuals with nonpublic information about Amdocs should review their options to help with the investigation or to use the SEC’s whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards of up to 30 percent for each successful SEC recovery. Further information is available from Reed Kathrein at 844-916-0895 or send an email to [email protected]
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Reed Kathrein, 844-916-0895