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Levi & Korsinsky announced an investigation into whether Xerox adequately disclosed the effect of $105 million in IEEPA tariff receivables on its results and 2026 guidance. Xerox lowered its adjusted operating-income outlook on Oct. 29 to $450 million–$475 million, below the range it gave in July. The notice does not establish wrongdoing or that a lawsuit has been filed.
Levi & Korsinsky says it is investigating whether Xerox Holdings Corporation adequately disclosed how $105 million in IEEPA tariff receivables affected its reported results and 2026 outlook, after Xerox cut its forecast on Oct. 29. The law firm’s notice invites investors who lost money in Xerox securities to contact it, but it does not establish that Xerox violated securities laws or that a lawsuit has been filed.
Xerox lowered its full-year 2026 adjusted operating-income outlook to $450 million to $475 million, according to the notice distributed by Levi & Korsinsky through PR Newswire. That range is as much as $130 million below the outlook Xerox provided in July. The company’s shares fell sharply on Oct. 29, the notice said; it did not provide a share-price figure or specify the size of the decline.
In July, Xerox had forecast adjusted operating income of $555 million to $605 million. The notice quotes Chief Financial Officer Chuck Butler as saying on July 30 that the outlook had increased by $105 million, primarily because Xerox recognized IEEPA tariff receivables in the second quarter. Xerox’s Form 10-Q, filed with the Securities and Exchange Commission on Aug. 6, recorded a $105 million reduction to cost of sales in connection with those receivables, according to the law firm’s account of the filing.
Levi & Korsinsky says its inquiry concerns whether Xerox’s statements or omissions about the accounting treatment and its effects could have been misleading to investors. The firm asks investors who purchased Xerox stock or securities and incurred losses to submit information for review or contact attorney Joseph E. Levi. The notice describes the review as having no upfront cost; eligibility would depend on factors including purchase dates and documented losses.
The Gap Between Xerox’s Two Forecasts
The change matters to shareholders because the July outlook included a $105 million benefit associated with tariff receivables, while the October forecast was lower than that earlier range. Investors may want to understand how much of the July guidance depended on that accounting item, what changed by October, and how the company described the risks at the time. Those are issues the announced investigation says it will examine, not findings that have already been established.
A law-firm investigation notice is not a court ruling, regulatory finding, or proof that investors have a valid claim. It is an invitation to provide information while the firm evaluates whether to pursue legal action. Any potential recovery, and whether a case proceeds, remains uncertain.
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July Guidance and the August Filing
The sequence outlined in the notice begins on July 30, 2026, when CFO Chuck Butler described the revised outlook of $555 million to $605 million and linked its $105 million increase primarily to recognition of IEEPA tariff receivables in the second quarter. Xerox later reported the related $105 million cost-of-sales reduction in its Aug. 6 Form 10-Q, according to Levi & Korsinsky.
On Oct. 29, Xerox reduced its full-year outlook to $450 million to $475 million. The law firm says the new range is $105 million to $130 million below the July range. Its notice also states that related financing costs were recorded elsewhere over time; the material supplied does not provide further detail on the timing or amount of those costs. The investigation announcement is the firm’s response to the guidance change and the disclosures it says merit review.
“The firm is investigating whether Xerox may not have adequately disclosed how its tariff-receivable accounting shaped reported results and guidance.”
— Levi & Korsinsky
No Finding or Lawsuit Reported
The notice does not say that a lawsuit has been filed, that regulators have opened an inquiry, or that a court has found Xerox’s disclosures misleading. It also does not provide Xerox’s response to the investigation announcement. The available material does not explain in detail why Xerox lowered its outlook on Oct. 29, how the tariff-receivable benefit factored into the revised forecast, or what changed between the two guidance announcements.
Whether any investor has a claim will depend on facts not set out in the notice, including the relevant purchase dates, transactions, losses, and eventual legal arguments. The notice’s invitation to contact the firm should not be read as confirmation that a claim exists or will result in compensation.
Investor Records and Further Developments
Levi & Korsinsky is asking investors who believe they incurred losses to contact the firm for an evaluation. Its notice suggests gathering brokerage statements or trade confirmations showing purchase dates, quantities, prices, and any sale dates and prices. It lists Joseph E. Levi at (212) 363-7500 and provides an email address in the original notice.
The next developments could include further information from the firm about whether it intends to pursue a case, or additional disclosures from Xerox about its outlook and tariff-receivable accounting. No filing date, court action, or other formal milestone was provided in the notice. Xerox’s revised 2026 outlook and any subsequent company statements will be relevant to understanding what changed and how the company explains the forecast reduction.
Key Questions
What is Levi & Korsinsky investigating?
The firm says it is examining whether Xerox adequately disclosed the effect of $105 million in IEEPA tariff receivables on reported results and 2026 guidance. That is the firm’s stated inquiry, not a finding that the disclosures were unlawful.
What were Xerox’s July and October outlooks?
Xerox announced a July adjusted operating-income range of $555 million to $605 million. On Oct. 29, it reduced the range to $450 million to $475 million, according to the notice.
Does the notice mean a lawsuit has been filed?
No lawsuit is reported in the supplied notice. It says Levi & Korsinsky is investigating potential investor claims; whether the firm will bring a case is not stated.
What should investors do if they want their losses reviewed?
The notice asks investors to contact Levi & Korsinsky and suggests collecting brokerage statements or trade confirmations with transaction dates, quantities, and prices. Eligibility and any potential recovery are not guaranteed.
Source: prnewswire.com
