Updated: May 01, 2017
Status: Ongoing Case
On October 21, 2016, Labaton Sucharow filed a securities class action lawsuit on behalf of a class of investors against Xerox Corporation (NYSE: XRX), and certain of its senior executives. On February 28, 2017, the court appointed Labaton Sucharow as liaison counsel for the class. The lead plaintiff filed an amended class action complaint on May 1, 2017.
The amended complaint alleges that from April 23, 2012 through October 27, 2015, Xerox violated provisions of the Securities Exchange Act of 1934 by issuing false and misleading statements regarding Xerox’s software product called Health Enterprise, which was purportedly designed to assist states administer their respective Medicaid programs. The amended complaint alleges that Xerox misleadingly represented to investors that Health Enterprise was a unique “platform” that could easily be transferred from state to state and therefore lower associated implementation costs. However, according to the amended complaint, Xerox had no such transferable platform at all. Xerox also represented that its contracts with states to implement Health Enterprise were successful and profitable, when, according to the amended complaint, the implementations experienced excessive delays or were not completed at all and each was significantly costly.
The case is Oklahoma Firefighters Pension and Retirement System v. Xerox Corporation, No. 16-cv-08260 (S.D.N.Y.). The lead plaintiff is Arkansas Public Employees Retirement System and the defendants are Xerox and certain of its senior executives.