HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Investigating Leidos Holdings, Inc. (LDOS) For Possible Securities Fraud, Encourages LDOS Investors to Contact Its Attorneys Now
SAN FRANCISCO, Feb. 16, 2021 /PRNewswire/ -- Hagens Berman urges Leidos Holdings, Inc. (NYSE: LDOS) investors to submit their losses now. The firm is investigating a potential securities fraud.
Visit: www.hbsslaw.com/investor-fraud/LDOS
Contact An Attorney Now: [email protected]
844-916-0895
Leidos Holdings, Inc. (LDOS) Investigation:
The firm is investigating whether Leidos misrepresented and concealed significant problems with its newly acquired L3Harris' Security Detection and Automation (SD&A) business, including its true financial performance and numerous product defects.
In May 2020, Leidos acquired L3Harris' SD&A business for $1 billion, claiming the highly leveraged deal would help Leidos achieve double-digit growth, 15% margins, $500 million in revenues, and boost international sales. Since this time, Leidos management has consistently stated that SD&A's business was "ahead of our milestones" and on target.
But on Feb. 16, 2021 analyst Spruce Point published a scathing report, concluding that Leidos had "wasted" $1b on the SD&A acquisition. Spruce Point states, "We believe Leidos is potentially covering up at least $100m of fictitious sales, mischaracterizing $355 - $367m of international revenue." Spruce Point also alleges that the company is "concealing numerous product defects from investors, including faulty explosive detection systems at airports, ports and borders." Spruce Point further avers that management may be intentionally inflating certain of Leido's financial metrics, including operating cash flow and organic sales growth, to obscure strains from investors. Accordingly, Spruce Point demands "an immediate Board investigation into the SD&A transaction and the dismissal of CEO Krone and CFO Reagan."
On this news, Leidos shares declined sharply.
"We're focused on investor losses and whether Leidos has misled investors about its SD&A business," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Leidos investor, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Leidos should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a national law firm with eight offices in eight cities around the country and over eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Contact:
Reed Kathrein, 844-916-0895
SOURCE Hagens Berman Sobol Shapiro LLP
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