Diebold Nixdorf, Incorporated

14 days left to seek lead plaintiff status

Case Summary

Company Name
Diebold Nixdorf, Incorporated
Stock Symbol
Class Period
February 14, 2017 to July 4, 2017
Motion Deadline
August 31, 2019
Southern District of New York

The complaint charges Diebold Nixdorf and certain of its officers with violations of the Securities Exchange Act of 1934.  In August 2016, Diebold Inc. completed the acquisition of German competitor Wincor Nixdorf AG and changed its name to Diebold Nixdorf, Inc.  Diebold Nixdorf provides connected commerce services, software and technology to enable millions of transactions each day.  The Company designs and delivers convenient, highly secure solutions that bridge the physical and the digital worlds of transactions.  The Company’s customers include nearly all of the world’s top 100 financial institutions and a majority of the top 25 global retailers.

The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose adverse information regarding the Company’s business and operations.  Specifically, defendants failed to disclose, among other things, that Diebold Nixdorf was experiencing delays in systems rollouts and a longer customer decision-making process and order-to-revenue conversion cycle, which was negatively impacting its services business and operations.  As a result of this information being withheld from the market, Diebold Nixdorf securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high of nearly $32 per share.

Then on July 5, 2017, Diebold Nixdorf announced that it was changing its previously announced financial guidance for fiscal 2017.  The Company now expected a net loss in the range of $110 to $125 million instead of its previous guidance of a net loss in the range of $50 to $75 million.  The Company attributed the change in guidance to the fact that its “banking business [wa]s increasingly made up of large, complex projects with higher software content, resulting in a longer customer decision-making process and order-to-revenue conversion cycle.  As a result, the timing and volume of orders to date leads the company to adjust its 2017 guidance.”  In addition, the Company stated that “delay[s] in systems rollouts [have had] a negative impact on the company's service business.  This change in volume, combined with investments in hiring and training in the service organization as part of the company's transformation, will pressure near-term margins.”  Following this news, the price of Diebold Nixdorf stock fell $6.40 per share, or nearly 23%, to close at $21.60 per share on July 5, 2017.

Class Period: February 14, 2017 - July 4, 2017
Main Menu