Xerox reports major financial losses, triggers class action lawsuits

On December 3, 2024, Pomerantz LLP announced the filing of a class action lawsuit against Xerox Holdings Corporation, following the company's disappointing financial performance earlier in the year. This lawsuit comes in the wake of significant revenue declines and mounting net losses reported by Xerox during the second and third quarters of 2024, particularly highlighted by a 12.4% drop in revenue compared to the previous year, leading to net losses of $113 million in the second quarter and a staggering $1.2 billion in the third quarter. The drastic fall in revenues was attributed to several internal issues including a flawed 'Reinvention' plan that disrupted sales operations, alongside delays in launching new products and poor sales productivity. The firm aims to represent shareholders who purchased Xerox securities during the specified class period, encouraging them to contact them to regain their losses. Shareholders have a limited timeframe until January 18, 2025, to respond as potential lead plaintiffs in the lawsuit. Overall, this legal action reflects the ongoing struggles of Xerox as it attempts to navigate through a dire financial landscape and restore its reputation in the market. The downturn in Xerox's stock price, which saw a significant drop of over 17% following the latest financial disclosures, further underscores investor concerns and the implications of the company's operational missteps.