Amdocs Limited (NASDAQ: DOX) Securities Fraud Class Action:
The complaint alleges that Defendants misrepresented and omitted material facts, including that: (i) Amdocs overstated its profits, cash, and liquidity, while understating its debt; (ii) Amdocs concealed its large borrowing; (iii) while Amdocs’ reported results showed that its North American business was stable, that business was actually deteriorating annually, in part because the Company was losing AT&T as a customer; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.
The Complaint alleges that on Mar. 31, 2021, the truth emerged when Jehoshaphat Research published a scathing report entitled, “Where Did Amdocs’ Profits And Auditors Go?”, concluding that Amdocs is “a massive financial deception” and “the stock is uninvestable.”
Based on a review of Amdocs international subsidiaries’ filings overseas, Jehoshaphat claims Amdocs has overstated profits by as much as 50%, that its reported profit margins are “wildly” inflated, and approximately 1/3 of Amdocs’ stated cash is unavailable for use. Jehoshaphat reported that former employee and direct competitor interviews confirmed its findings that Amdocs “has been losing business for years but has made up for these losses by inflating financials, sometimes to a point beyond recognition by the country managers.” Jehoshaphat also raised concerns about the Company subsidiaries’ auditor resignations during the last two years.
In response, the price of Amdocs shares fell over 11% on Mar. 31, 2021, wiping out hundreds of millions of dollars of shareholder value.
“We’re focused on investors’ losses and proving Amdocs cooked its books,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are an Amdocs investor and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Amdocs 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 DOX@hbsslaw.com.
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Reed Kathrein, 844-916-0895