The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of those who acquired HP Inc. (“HP” or the “Company”) (NYSE: HPQ) securities during the period from February 23, 2017 through October 3, 2019. Investors have until April 20, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company failed to disclose that: (i) HP lacked telemetry data from its commercial printers and had to use unreliable and stagnant market share data to develop assumptions for the four-box model; (ii) HP knew the lack of telemetry data was a critical shortcoming of the four-box model because HP possessed telemetry data on its personal printing side and knew it was a necessary element for an accurate understanding of the Supplies channel; (iii) the four-box model was severely deficient and not a strong predictor of Supplies demand and outcomes; and (iv) the Supplies inventory in the Company’s channel exceeded demand by at least $100 million and HP’s Supplies revenue growth was grossly inflated.
On February 27, 2019, HP reported weaker than predicted demand from commercial customers in HP’s Europe, the Middle East, and Africa market, revealed that it lacked telemetry data to determine reliable market share assumptions for its Supplies business, and revised its previous estimate of Supplies revenue. On this news, the price of HP stock fell $4.12, or 17.3%, to close at $19.73 on February 28, 2019.
On October 3, 2019, HP announced a major change to the Company’s business model that would de-emphasize Supplies revenue and also announced mass layoffs as part of a major restructuring. On this news, the price of HP stock fell $1.76, or 9.5%, to close at $16.64 on October 4, 2019.
If you acquired HP securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.