Boston, Massachusetts–(Newsfile Corp. – February 23, 2021) – Block & Leviton LLP (www.blockleviton.com), a national securities litigation firm, announces that it is investigating Leidos Holdings, Inc. (NYSE: LDOS) for potential violations of the federal securities laws.
On February 16, 2021, analyst Spruce Point Capital Management published a report concluding that Leidos had “wasted” $1 billion on its May 2020 acquisition of the Security Detection and Automation business of L3 Harris Technologies. The Spruce Point report further alleged that Leidos is “potentially covering up at least $100m of fictitious sales, mischaracterizing $355 – $367m of international revenue,” and that Leidos is “concealing numerous product defects from investors, including faulty explosive detection systems at airports, ports and borders.” The Spruce Point report further alleged that Leidos’ management may be intentionally inflating certain of Leidos’ financial metrics to obscure strains from investors. Following publication of the Spruce Point report, Leidos’ stock price fell sharply.
Then before the markets opened on February 23, 2021, Leidos published a press release announcing its fourth quarter and full year 2020 financial results. Shares immediately plummeted, and are presently down approximately 10% in intraday trading.
Block & Leviton LLP (www.blockleviton.com) is investigating whether Leidos and certain of its executives may be liable for securities fraud. If you purchased or acquired shares of Leidos and have questions about your legal rights or possess information relevant to this investigation, please contact Block & Leviton attorneys at (617) 398-5600, via email at [email protected], or visit our website for information on the case.
Block & Leviton LLP is a firm dedicated to representing investors and maintaining the integrity of the country’s financial markets. The firm represents many of the nation’s largest institutional investors as well as individual investors in securities litigation throughout the United States. The firm’s lawyers have recovered billions of dollars for its clients.
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BLOCK & LEVITON LLP
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Boston, MA 02110
Phone: (617) 398-5600
Email: [email protected]
SOURCE: Block & Leviton LLP
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