Employees Retirement System of the Puerto Rico Electric Power Authority v. Conduent Inc., et al.
Bernstein Liebhard is co-lead counsel representing co-lead plaintiff, Oklahoma Firefighters Pension and Retirement System, in a securities class action entitled Employees Retirement System of the Puerto Rico Electric Power Authority v. Conduent Inc., et al., No. 2:19-cv-08237-SDW-SCM (D.N.J.) alleging violations of Section 10(b) of the Securities Exchange Act of 1934. Lead Plaintiff alleges that the defendants (Conduent, its CEO Ashok Vermui, and its CFO Brian Webb-Walsh) issued false and misleading statements concerning Conduent’s progress with the company’s strategic transformation process, specifically that Conduent had addressed problems with its legacy IT infrastructure and IT vendors. At the end of the Class Period, defendants revealed that issues caused by the company’s outdated IT infrastructure and suboptimal performance by a legacy IT vendor had materially impacted Conduent’s core tolling business. Consequently, Conduent reported revenue and earnings per share below analyst’s expectations and cut its fiscal year 2018 revenue guidance 2.5% and adjusted EBIDTA guidance 4.4%. On June 5, 2020, the Court denied defendants’ motion to dismiss Lead Plaintiff’s amended complaint. The action is pending.