Securities class action litigation has been filed on behalf of investors in the securities of Amdocs Limited (“Amdocs”) (NASDAQ: DOX). If you are an investor who purchased or otherwise acquired Amdocs securities between December 13, 2016 and March 30, 2021, inclusive (the “Class Period”), you may move the court for appointment as lead plaintiff by no later than June 8, 2021.
You may retain Lieff Cabraser Heimann & Bernstein, LLP, or other attorneys, as your counsel in the action. Recognized by the National Law Journal as one of the nation’s top plaintiffs’ law firms, Lieff Cabraser is committed to safeguarding the rights of investors and upholding the integrity of the market. We have significant experience and a successful track record of representing institutional and individual investors in securities and financial fraud litigation.
Amdocs investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should use the form below or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the Amdocs Securities Class Litigation
Amdocs, headquartered in Chesterfield, Missouri, provides software and services to communications, cable and satellite, entertainment, and media industry service providers worldwide. The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Amdocs overstated its profits, cash, and liquidity but understated its debts; (2) Amdocs concealed its large borrowing by “window-dressing” its balance sheets, which included paying down debts before the end of each quarter to show a debt-free balance sheet and then re-borrowing those debts; (3) although Amdocs reported that its results showed the stability of its North American business, that business was declining annually, due in part to the loss of AT&T as a customer; (4) many reputable auditors resigned and were subsequently replaced by “scandal-plagued or tiny shops”; and (5) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On March 31, 2021, before the open of the market, short seller Jehoshaphat Research released a report detailing several instances of misconduct by Amdocs. Specifically, the report revealed the extent of the Company’s overstated financials, according to a former American DOX executive who stated that, “[t]he US business was declining at a rate of [around] 7% annually…but then we would see the company [publish results that] say North America is stable…We would send [our quarterly numbers] to Israel…and somehow everything all comes out as favorable…every quarter [from 2016-on], that came as a big surprise.” Amdocs also “window-dressed” its balance sheets to conceal the large amount of money it was borrowing each quarter. In reality, Amdocs was losing the critical business of its customer AT&T and there was a concerning pattern of the resignation of multiple auditors, only later to be replaced by “scandal-plagued or tiny shops.” On this news, Amdocs’s share price fell $9.19 per share, or 11.58%, from its closing price of $79.34 on March 30, 2021, to close at $70.15 per share on March 31, 2021.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Munich, is an internationally-recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. Recognized as a “Plaintiffs’ Powerhouse” by Law360, Lieff Cabraser has litigated some of the most important civil cases in the United States and has assisted clients in recovering over $124 billion in verdicts and settlements. Benchmark Litigation named Lieff Cabraser its “2020 California Plaintiff Firm of the Year,” and in early 2021, The American Lawyer named our firm its “Boutique Litigation Firm of the Year.” Lieff Cabraser is committed to access to justice for all.