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Diebold Nixdorf sued over earnings results, Wincor Nixdorf deal

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Diebold Nixdorf sued over earnings results, Wincor Nixdorf deal

Diebold Nixdorf Inc. is facing a class-action suit from shareholders that purchased the company's shares from Feb. 14, 2017, to Aug. 1, 2018, over its allegedly misleading statements.

The City of Livonia Retiree Health and Disability Benefits Plan filed the suit in the U.S. District Court for the Northern District of Ohio, Cleveland Division, alleging that statements from Diebold Nixdorf's executives about the acquisition of Wincor Nixdorf in August 2016 and the company's financial statements thereafter were misleading. The suit said executives claimed that the integration process was going on smoothly and that the acquisition would result in cost savings and higher revenues, but plaintiffs alleged Diebold Nixdorf had difficulties in the integration process and was actually posting losses and missing targets.

The suit also noted that company financial statements from fourth quarter and full year 2016 up to the second quarter of 2018 either featured net losses or worse-than-expected results and earnings outlooks that either lowered projected income or an upward revision on projected losses. The plaintiffs also said the company posted impairments related to the Wincor Nixdorf deal in certain financial statements. They noted that on the second quarter 2018 earnings call, Diebold Nixdorf's management disclosed that Wincor Nixdorf was still not fully integrated, despite several statements in the past saying integration was going as planned, with an analyst on the call saying it was "disturbing" for the company to make such a late admission.

The plaintiffs said Diebold Nixdorf's stock plunged on the news of earnings guidance cuts and integration problems.

Diebold Nixdorf told S&P Global Market Intelligence the claims are without merit and it intends to defend itself.