DXC Tech Fights Off Investor Bid for New Shot at Securities Suit

DXC Technology Co. is free of accusations it made misleading statements about its financial health after the Fourth Circuit rejected investors’ attempt to revive the would-be class case Wednesday.

Investors say the information technology company didn’t fully disclose how cost-cutting measures would affect its future revenue-generating ability. The lower court correctly dismissed the suit because the investors didn’t raise a strong inference that DXC intentionally sought to mislead them, the U.S. Court of Appeals for the Fourth Circuit said.

The investors argued that a former DXC executive’s suit against the company—in which he claimed to have warned DXC that ...