Robbins Geller Rudman & Dowd LLP (https://www.rgrdlaw.com/cases-amdocs-limited-class-action-lawsuit.html) today announced that it filed a class action seeking to represent purchasers of Amdocs Limited (NASDAQ:DOX) common stock during the period between January 29, 2021 and March 30, 2021 (the “Class Period”). This action was filed in the Eastern District of Missouri and is captioned Glover v. Amdocs Limited, No. 21-cv-00418.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Amdocs common stock during the Class Period to seek appointment as lead plaintiff in the Amdocs class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Amdocs class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Amdocs class action lawsuit. An investor’s ability to share in any potential future recovery of the Amdocs class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff in the Amdocs class action lawsuit, you must move the Court no later than 60 days from today. If you wish to discuss the Amdocs class action lawsuit or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Mary K. Blasy of Robbins Geller, at 800/449-4900 or 631-454-7719 or via e-mail at mblasy@rgrdlaw.com You can view a copy of the complaint as filed at https://www.rgrdlaw.com/cases-amdocslimited-class-action-lawsuit.html.
The Amdocs class action lawsuit charges Amdocs and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Amdocs provides global software and services to the communications, cable and satellite, entertainment, and media industry service providers.
The complaint alleges that throughout the Class Period, Amdocs overstated the strength of its business metrics and financial prospects, including concealing that Amdocs had been losing customers and that its U.S. business in particular had been declining, that Amdocs had been borrowing undisclosed sums in the past in order to meet its capital needs but concealing that borrowing from investors, that Amdocs was concealing the restrictions on the cash it held, that Amdocs had been overstating its operating profits by up to 50%, and that as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company, its prospects and revenue growth rate during the Class Period.
On March 31, 2021, stock research firm Jehoshaphat Research issued a report entitled “WHERE DID AMDOCS’ PROFITS AND AUDITORS GO?,” revealing the results of that firm’s “months-long investigation into what” it believes to be “a massive financial deception taking place at Amdocs.” Jehoshaphat Research said that it had “gathered extensive evidence from the national corporate registry filings of dozens of subsidiaries from around the globe” which it had compared to Amdocs’ public filings and found, among other things, “wildly overstated profit margins, a balance sheet that is far from the cash-rich fortress it appears to be, and a revolving door of company auditors resigning from their posts in multiple countries.” The complaint alleges that according to Jehoshaphat Research, the “enormous discrepancies between DOX’s true business health and the mirage that is its reported finances simply do not reconcile.” On this news, the market price of Amdocs common stock declined more than $9.00 per share on March 31, 2021, more than 10%, on extremely heavy trading volume.
The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For eight consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.
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Contacts
Robbins Geller Rudman & Dowd LLP
Mary K. Blasy, 800-449-4900
mblasy@rgrdlaw.com
