Diebold Nixdorf, Incorporated (DBD) Accused of Misleading Shareholders
According to the complaint for alleged violations of the Securities Exchange Act of 1934 between February 14, 2017 and July 4, 2017, Diebold Nixdorf, Incorporated (DBD) touted its large, multi-year contract renewals with its two largest outsourcing customers, claiming it ” a testament to strong competitive position and a confirmation of services-led, software-enabled strategy.” However, these statements were materially false and misleading as they failed to mention that Diebold Nixdorf expected certain other customers would not renew their service contracts, therefore causing a shortage of adequately trained service technicians, which would negatively impact its service business and operations. The reality of Diebold Nixdorf’s situation was finally disclosed in July 2017, when Diebold Nixdorf lowered its guidance for fiscal 2017 due to longer customer decision-making and order-to-revenue conversion cycles as well as systems rollout delays. On this news, Diebold Nixdorf’s stock price fell $6.28, or nearly 23%, to close at $21.20 per share. The stock currently trades at just $9.95.