Endava provides technology services for clients in consumer products, healthcare, mobility, and retail verticals.
The Class Action alleges that, during the Class Period, Defendants made misleading statements and omissions regarding the Company’s business, financial condition, and prospects. Specifically, Defendants misled the market regarding demand for Endava’s services within its Payments & Financial Services vertical and Banking & Capital Markets vertical.
As the truth about Endava’s business reached the market, the price of Endava’s stock suffered significant declines, harming investors. For example, on February 29, 2024, before the market opened, Endava filed a Form 6-K with the United States Securities and Exchange Commission, reporting revenues below expectations and drastically cutting revenue guidance for full year 2024. Endava attributed the revenue decline and reduced guidance to “clients [] hesitating on when to commit the sizable spend needed to build production-ready systems.” On this news, the price of Endava’s common stock declined $26.65, or 42%, to close at $37.17, on unusually heavy trading.
