Investor Alert: Kaplan Fox Announces Investigation Of HP Inc.
NEW YORK, March 19, 2020 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of HP Inc. ("HP" or the "Company") (NYSE: HPQ). A complaint has been filed against the Company on behalf of investors that purchased HP common stock between February 23, 2017 and October 3, 2019.
On February 27, 2019, HP reported disappointing total revenue for its Supplies business within its Printer segment for the first quarter of fiscal 2019, citing weaker-than-predicted demand from commercial customers in the Company's Europe, the Middle East, and Africa market (the EMEA market). In reporting these results, HP acknowledged that its traditional "four-box model"--focused on in-store base, usage, market share, and price (the four key drivers of revenue growth)--had been based upon incorrect data concerning inventory, market share, and pricing assumptions. HP also revealed that it lacked telemetry data to determine reliable market share assumptions for its Supplies business. According to the complaint, the Company revised its previous estimate of Supplies revenue for fiscal 2019 to a decline of 3%, versus prior guidance of flat to slightly up revenue year over year.
Following this news, HP's stock price fell $4.12 per share, or 17.27%, to close at $19.73 per share on February 28, 2019.
According to the complaint, on May 30, 2019, at the Sanford C. Bernstein Strategic Decisions Conference, HP's President and Chief Executive Officer Dion J. Weisler ("Weisler") admitted that the consumer segment of the Company's Supplies business had had telemetry data for years, meaning that management had known all along of the importance of telemetry data for an accurate model and that the commercial Supplies business lacked this key input.
Following this news, HP's stock price fell $0.46 per share, or 2.4%, to close at $18.68 per share on May 31, 2019.
Then, on August 22, 2019, HP announced that Weisler would step down from his roles at the Company at the end of October 2019 due to a family health matter. According to the complaint, HP also announced mixed earnings results from the third quarter of fiscal 2019, with Supplies revenue down 7% year-over-year.
Following this news, HP's stock price fell $1.12 per share, or 5.92%, to close at $17.81 per share on August 23, 2019.
Finally, on October 3, 2019, HP announced that it was "departing from the purely transactional Supplies-centric business model" and moving away from using the four-box model, transitioning instead to a hardware-driven business model. Under the new business model, HP would de-emphasize Supplies revenue as "the singular metric to determine our progress" and instead focus on "the key metrics [of] service growth and operating profit dollars, which better reflect[] the system profitability." HP also announced mass layoffs as part of a major restructuring.
Following these disclosures, HP's stock price fell $1.76 per share, or 9.57%, to close at $16.64 per share on October 4, 2019.
If you are a member of the proposed Class, you may move the court no later than April 20, 2020 to serve as a lead plaintiff for the purported class. You need not seek to become a lead plaintiff in order to share in any possible recovery. If you would like to discuss the complaint or our investigation, please contact us by emailing [email protected] or by calling 800-290-1952.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this Notice, your rights, or your interests, please contact:
Donald R. Hall
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(800) 290-1952
(212) 687-1980
Fax: (212) 687-7714
E-mail: [email protected]
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4700
Fax: (415) 772-4707
E-mail: [email protected]
SOURCE Kaplan Fox & Kilsheimer LLP
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