Amdocs Management Limited
Lead Plaintiff Deadline: 06/08/2021
SUMMARY OF CASE:
A securities class action has been filed against Amdocs Management Limited (DOX) on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Amdocs ordinary shares between December 13, 2016 through March 30, 2021. This case has been filed in the USDC – C.D.CA.
The Complaint allegesthat on March 31, 2021, Jehoshaphat Research published a short-seller report addressing Amdocs, which alleged, among other things, that: (1) Amdocs overstated its profits, evidenced by steady parent profits despite declining subsidiary profits; (2) there was a concerning pattern of reputable auditors resigning, only to be replaced by “scandal-plagued or tiny shops”; (3) Amdocs “window-dressed” its balance sheets to keep its large borrowing a secret; and (4) all of the foregoing was corroborated by former employees and direct competitors of the Company, including 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’ stock price fell sharply on March 31, 2021, to close at $70.15 per share.