July 15, 2019
Bernstein Liebhard LLP announced today that the court appointed the Firm as co-lead counsel in a securities class action lawsuit pending in the United States District Court for the Southern District of New Jersey on behalf of those who purchased or acquired shares of Conduent, Inc. (“Conduent” or the “Company”) (NYSE: CNDT) from February 21, 2018 through November 6, 2018, inclusive (the “Class Period”).
The initial complaint filed in this class action alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Conduent had misled investors in representing that as of February 2018 the Company had fixed efficiency issues caused by Conduent operating on various information resource platforms; (2) Conduent admitted in November 2018 that its “outdated and historically under-invested legacy IT infrastructure has caused major disruptions to our operations and impacted clients and delivery performance”; and (3) as a result, Defendants’ public statements were materially false and misleading at all relevant times.
On November 7, 2018, Defendants acknowledged that Conduent had suffered reduced third quarter and projected fourth quarter operating results caused by “continued suboptimal performance from an inherited legacy technology vendor. The performance issue stem[s] from the vendor’s inability to deliver on service level agreements, lack of responsiveness to Conduent’s needs, and poorly structured contract which we inherited” and that an “outdated and historically under-invested legacy IT infrastructure has caused major disruptions to our operations and impacted clients and delivery performance.”
On this news, Conduent’s stock price tumbled $5.60 per share to $13.62, or down 29.1%, on very heavy trading volume.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for eleven consecutive years.
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Michael S. Bigin
Bernstein Liebhard LLP