Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, announces that a class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of investors that purchased Amdocs Limited (NASDAQ: DOX) ordinary shares between December 13, 2016 and March 30, 2021, inclusive (the “Class Period”). Investors have until June 8, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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Amdocs, through its global subsidiaries, provides software and services to communications, cable and satellite, entertainment, and media industry service providers worldwide. Historically, the Company’s largest percentage of revenues come from its North American business, mostly the U.S., particularly from large customers including, among others, AT&T Inc. (“AT&T”).
On March 31, 2021, Jehoshaphat Research (“Jehoshaphat”) published a short-seller report addressing Amdocs, which alleged that Amdocs overstated its profits, evidenced by steady parent profits despite declining subsidiary profits; that there was a concerning pattern of reputable auditors resigning, only to be replaced by “scandal-plagued or tiny shops”; that Amdocs “window-dressed” its balance sheets to keep its large borrowing a secret, namely by paying down its debt just prior to the end of each quarter, therefore showing a debt-free balance sheet on that day, before reborrowing the money shortly thereafter; and that all of the foregoing was corroborated by former employees and direct competitors of the Company, who noted that Amdocs was losing AT&T as a customer, as well as a former American Amdocs executive, who stated that the Company’s “US business was declining at a rate of [around] 7% annually . . . but then we would see the company [publish results that] say North America is stable.”
On this news, Amdocs’ ordinary share price fell $9.19 per share, or 11.58%, to close at $70.15 per share on March 31, 2021.
The complaint, filed on April 9, 2021, alleges that throughout the Class Period defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose 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.
If you purchased Amdocs ordinary shares during the Class Period and suffered a loss, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker, Melissa Fortunato, or Marion Passmore by email at email@example.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.