Diebold Nixdorf, Incorporated (DBD) Accused of Misleading Shareholders
According to the complaint for alleged violations of the Securities Exchange Act of 1934 between May 4, 2017 and July 4, 2017, Diebold Nixdorf, Incorporated (DBD) touted the automation, optimization, and efficiency of its systems line of business (“LOB”) in its 1Q 2017 10-Q and claimed that its “DN2020” program would, “deliver greater innovation for customers, career enrichment opportunities for employees, and enhanced value for shareholders.” However, these statements were materially false and misleading as they failed to mention that Diebold Nixdorf was experiencing delays in systems rollouts as well as a longer customer decision-making process and order-to-revenue conversion cycle, which were negatively impacting its service business and operations. The reality of Diebold Nixdorf’s situation was finally disclosed in July 2017 when Diebold Nixdorf revealed a wider fiscal 2017 net loss guidance of $110 million to $125 million from its initial range of $50 to $75 million due to the previously stated issues. On this news, Diebold Nixdorf’s stock price fell $6.40, or nearly 23%, to close at $21.60 per share.