Loading, Please Wait...
LOS ANGELES, Aug. 27, 2019 (GLOBE NEWSWIRE) -- Glancy Prongay & Murray LLP (“GPM”) reminds investors of the upcoming September 3, 2019 deadline to file a lead plaintiff motion in the class action filed on behalf of Diebold Nixdorf, Incorporated (“Diebold Nixdorf” or the “Company”) (NYSE: DBD) investors who purchased securities between February 14, 2017 and August 1, 2018, inclusive (the “Class Period”).
If you are a shareholder who suffered a loss, click here to participate.
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, at 310-201-9150, Toll-Free at 888-773-9224, or by email to firstname.lastname@example.org, or visit our website at www.glancylaw.com.
In August 2016, Diebold acquired one of its primary competitors, Wincor Nixdorf, for $1.8 billion.
On July 5, 2017, the Company disclosed that it expected a wider net loss than prior guidance for fiscal 2017, from a range of $50 to $75 million to a range of $110 to $125 million net loss. The Company attributed the lowered expectations to a “delay in systems rollouts” as well as “a longer customer decision-making process and order-to-revenue conversion cycle.”
On this news, the Company’s share price fell $6.40, or nearly 23%, to close at $21.60 per share on July 5, 2017, thereby injuring investors.
Then, on August 1, 2018, the Company revealed an operating loss of $131 million for second quarter 2018, which included a $90 million asset impairment. The Company also expected net losses for the year to reach $325 million to $365 million.
On this news, the Company’s share price fell $4.30, or nearly 38%, to close at $7.05 per share on August 1, 2018, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Diebold had not successfully remediated problems stemming from the Wincor Nixdorf acquisition, and such problems were in fact worsening; (2) that Diebold continued to suffer from tens of millions of dollars in operational inefficiencies and cost overruns as a result of the Wincor Nixdorf merger, which more than offset any purported synergies; (3) that Diebold continued to experience extreme difficulties integrating the two legacy sales forces, IT systems, and inventory management systems, as well as other operational difficulties; (4) that Diebold was still missing out on sales opportunities and losing market share to competitors in both Europe and North America as a result of the integration problems; (5) that Diebold had overvalued assets acquired in the Wincor Nixdorf merger by more than $100 million; (6) that Diebold was on track to suffer hundreds of millions of dollars in additional losses in 2018 beyond what had been previously presented to investors; (7) that Diebold required hundreds of millions of dollars in additional capital to fully integrate Wincor Nixdorf; and (8) that, as a result of the foregoing, Diebold’s business and operations had been materially impaired as a result of the merger, the Company was suffering from accelerating losses, and defendants’ financial projections lacked a reasonable basis.
Follow us for updates on Twitter: twitter.com/GPM_LLP.
If you purchased or otherwise acquired Diebold Nixdorf securities during the Class Period you may move the Court no later than September 3, 2019 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to email@example.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.