DXC Gets Another Merger Stock-Drop Suit Tossed, For Now
Law360 (July 28, 2020, 10:30 PM EDT) -- A California federal judge tossed a proposed class action accusing DXC Technology Co. and Hewlett Packard Enterprise executives of making false statements ahead of the merger which created DXC, finding allegations of an undisclosed cost-cutting target as an insufficient basis for securities violations.
U.S. District Judge Beth Labson Freeman pointed to a recent ruling by U.S. District Judge Anthony J. Trenga of the Eastern District of Virginia, who dismissed a companion suit in June that made similar allegations.
The Virginia court found the existence of an internal $2.7 billion cost-cutting target, even if true, would not prove there were any knowingly false or...
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