<br /> Leidos Holdings, Inc. Reminder: Kessler Topaz Meltzer & Check, LLP Reminds Investors of Securities Fraud Class Action Lawsuit Filed Against Leidos Holdings, Inc.<br />

Leidos Holdings, Inc. Reminder: Kessler Topaz Meltzer & Check, LLP Reminds Investors of Securities Fraud Class Action Lawsuit Filed Against Leidos Holdings, Inc.

PR Newswire

RADNOR, Pa.

,

March 28, 2021

/PRNewswire/ — The law firm of Kessler Topaz Meltzer & Check, LLP reminds investors that a securities fraud class action lawsuit has been filed in

the United States

District Court for the Southern District of

New York

against Leidos Holdings, Inc. (NYSE: LDOS) (“Leidos”) on behalf of those who purchased or acquired Leidos securities

between

May 4, 2020

and

February 23, 2021

, inclusive (the “Class Period”).

Investor Deadline Reminder: Investors who purchased or acquired Leidos securities

during the Class Period may,

no later than

May 5, 2021

, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 or

Adrienne Bell, Esq.

(484) 270-1435; toll free at (844) 887-9500; via e-mail at

[email protected]

;

or

click

https://www.ktmc.com/leidos-holdings-class-action-lawsuit?utm_source=PR&utm_medium=link&utm_campaign=leidos

Leidos is a science, engineering, and information technology company that provides services and solutions in the defense, intelligence, homeland security, civil and health markets, both domestically and internationally. The Class Period commences on

May 4, 2020

, when Leidos announced that it had completed the acquisition of L3Harris Technologies’ Security Detection and Automation businesses (“SD&A Businesses”).

According to the complaint, on

February 16, 2021

, Spruce Point Capital Management LLC (“Spruce Point”) published a research report, alleging, among other things that “Leidos is potentially covering up at least

$100m

of fictitious sales, mischaracterizing

$355

–

$367m

of international revenue.” The report also alleged that Leidos was “concealing numerous product defects from investors, notably faulty explosive detection systems at airports and borders.” Following this news, Leidos’s share price fell

$2.58

, or 2.4%, to close at

$105.22

per share on

February 16, 2021

.

Then, on

February 23, 2021

, Leidos announced its fourth quarter and full year 2020 financial results in a press release. Therein, Leidos reported

$89 million

in revenue related to the SD&A Businesses for the fourth quarter, meaning that after two full quarters, the acquisition generated only

$163 million

in sales (or

$326 million

annualized), falling well short of projected

$500 million

sales. Leidos expected cash flow of

$850 million

, well below analyst estimates of

$1.083 billion

. Following this news, Leidos’s stock price fell

$10.29

, or 9.91%, to close at

$93.51

per share on

February 23, 2021

.

Finally, on

February 24, 2021

, Spruce Point highlighted that Leidos had “materially expanded” the risk disclosures in its annual report for the year ended

December 31, 2020

, which had been filed after the market closed on

February 23, 2021

. Spruce Point tweeted: “We believe it is validating all the major points of our report.” Spruce Point noted that Leidos expanded its risk disclosures regarding insurance coverage, as “Liedos is shipping defective products back from various countries [that] may not have the same protections as in the U.S.” Following this news, Leidos’s stock price fell

$3.13

, or 3.3%, to close at

$90.38

per share on

February 24, 2021

.

The complaint alleges that, throughout the Class Period, the defendants failed to disclose to investors that: (1) the purported benefits of Leidos’s acquisition of L3Harris Technologies’ SD&A Businesses were significantly overstated; (2) Leidos’s products suffered from numerous product defects, including faulty explosive detection systems at airports, ports, and borders; (3) as a result of the foregoing, Leidos’s financial results were significantly overstated; and (4) as a result of the foregoing, the defendants’ positive statements about Leidos’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Leidos

investors may,

no later than

May 5, 2021

, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.

Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from

the United States

and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit

www.ktmc.com

.

CONTACT:

Kessler Topaz Meltzer & Check, LLP

James Maro, Jr., Esq.

Adrienne Bell, Esq.

280 King of Prussia Road

Radnor, PA

19087

(844) 887-9500 (toll free)

[email protected]