50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

Unisys faces investigation over disclosure control flaws, stock drops

EditorPollock Mondal
Published 14/11/2023, 12:04 am
© Reuters.
UIS
-

Unisys (NYSE:UIS) Corporation, a global information technology company, is currently under scrutiny following revelations of significant internal policy weaknesses that undermined the effectiveness of its disclosure controls throughout several quarters of 2021 and 2022. These findings have precipitated a notable decline in the company’s stock value.

An internal audit by the Audit & Finance Committee of Unisys late in 2022 exposed considerable flaws in the communication policies within its IT and legal/compliance departments. The shortcomings invalidated the company's disclosure controls for the periods ending on December 31, 2021; March 31, and June 30, 2022. Additionally, as of December 31, 2021, Unisys' internal control over financial reporting was deemed inadequate.

The disclosure of these issues has led to a sharp decline in the price of Unisys' stock (NYSE:UIS), causing alleged losses for investors. In response to these events, the law firm Rosca Scarlato has begun an investigation into potential securities violations and corporate misconduct by Unisys. Today, attorneys Alan Rosca and Paul Scarlato announced they are probing potential compensation claims for shareholders who invested in Unisys before February 2022.

The legal team at Rosca Scarlato is working on a contingency fee basis, which means they will only receive payment upon successful resolution of the case. This approach signals their commitment to securing compensation for affected UIS shareholders without upfront costs to them.

As the investigation unfolds, shareholders who incurred losses from the UIS stock price drop and who meet the investment timeframe criteria are being considered for potential claims. The outcome of this investigation could have significant implications for Unisys' corporate governance and financial reporting practices moving forward.

InvestingPro Insights

In light of the recent events surrounding Unisys Corporation, it's worth noting some key data and tips from InvestingPro. Despite the company's recent struggles, there have been significant returns on the stock over the last week and month. The 1-week price total return as of late 2023 was a substantial 52.6%, and the 1-month price total return was 44.12%.

InvestingPro Tips also suggest that the company is trading at a low revenue valuation multiple, and the valuation implies a strong free cash flow yield. However, it's important to bear in mind that analysts do not anticipate the company will be profitable this year, and it was not profitable over the last twelve months as of Q3 2023.

These insights indicate that while there are potential returns to be made from investing in Unisys, there are also significant risks involved. For more detailed tips and data, consider exploring InvestingPro, which offers many more insights to aid your investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.