Notice of Lead Plaintiff Deadline for Shareholders in the Leidos Holdings, Inc. Class Action Lawsuit

SAN DIEGO–(BUSINESS WIRE)–#LDOSstock–Robbins Geller Rudman & Dowd LLP announces that a class action lawsuit has been filed in the Southern District of New York on behalf of purchasers of Leidos Holdings, Inc. (NYSE:LDOS) securities between May 4, 2020 and February 23, 2021, inclusive (the “Class Period”). The case is captioned Morton v. Leidos Holdings, Inc., No. 21-cv-01911, and is assigned to Judge Mary Kay Vyskocil. The Leidos class action lawsuit charges Leidos and certain of its executives with violations of the Securities Exchange Act of 1934.

The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Leidos securities during the Class Period to seek appointment as lead plaintiff in the Leidos 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 Leidos class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Leidos class action lawsuit. An investor’s ability to share in any potential future recovery of the Leidos class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Leidos class action lawsuit or have questions concerning your rights regarding the Leidos class action lawsuit, please provide your information here or contact counsel, Michael Albert of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at malbert@rgrdlaw.com. Lead plaintiff motions for the Leidos class action lawsuit must be filed with the court no later than May 3, 2021.

Leidos is a science, engineering, and information technology company that provides services and solutions in the defense, intelligence, homeland security, civil, and health markets, both domestically and internationally.

The Leidos class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) the purported benefits of Leidos’s acquisition of L3Harris’ Security Detection & Automation businesses (“SD&A Businesses”) were significantly overstated; (ii) Leidos’s products suffered from numerous product defects, including faulty explosive detection systems at airports, ports, and borders; (iii) as a result, Leidos’s financial results were significantly overstated; and (iv) consequently, defendants’ positive statements about Leidos’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On February 16, 2021, Spruce Point Capital Management LLC published a research report alleging, among other things, that “Leidos is potentially covering up at least $100m of fictitious sales, mischaracterizing $355 – $367m of international revenue.” The report also alleged that Leidos was “concealing numerous product defects from investors, notably faulty explosive detection systems at airports and borders.” On this news, Leidos’s share price fell.

Then, on February 23, 2021, Leidos announced its fourth quarter and full year 2020 financial results in a press release. Therein, Leidos reported $89 million revenue related to the SD&A Businesses for the fourth quarter, meaning that after two full quarters, the acquisition generated only $163 million in sales (or $326 million annualized), falling well short of projected $500 million sales. Leidos expected cash flow of $850 million, well below analyst estimates of $1.083 billion. On this news, Leidos’s stock price fell nearly 10%.

Finally, on February 24, 2021, Spruce Point highlighted that Leidos had “materially expanded” the risk disclosures in its annual report for the year ended December 31, 2020. Spruce Point tweeted: “We believe it is validating all the major points of our report.” On this news, Leidos’s stock price fell once more, further damaging investors.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For seven 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.

Contacts

Robbins Geller Rudman & Dowd LLP

Michael Albert, 800-449-4900

malbert@rgrdlaw.com