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.
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