Xerox Suit Says Leaders Overhyped Overhaul, Forcing Stock Down

Xerox Holdings Corp. executives and board members misled investors about how an overhaul would impact the company, sending the stock down and exposing it to a proposed class action when revealing the reorganization dampened quarterly sales and revenue in 2024, a shareholder derivative lawsuit says.

The company’s self-described “reinvention” included job cuts that hurt Xerox’s sales productivity, leading it to sell through older products at a lower rate which in turn delayed launching new ones, stockholder Victor LaVallee says in the complaint filed in the US District Court for the Southern District of New York on Tuesday. He says Xerox ...