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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 2026 outlook. Xerox cut that outlook on October 29 to $450 million–$475 million, below the range it gave in July. The notice does not establish wrongdoing or say that a lawsuit has been filed.
Levi & Korsinsky says it is investigating whether Xerox Holdings Corp. adequately disclosed the effect of $105 million in IEEPA tariff receivables on its financial results and outlook, after Xerox cut its 2026 adjusted operating income forecast on October 29. The law firm’s notice invites investors who incurred losses to contact it, but 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 on October 29, according to the notice distributed by Levi & Korsinsky through PR Newswire. The revised range was as much as $130 million below the outlook announced in July. The notice also says Xerox shares fell sharply that day, but provides no share-price figures or percentage change.
On July 30, Chief Financial Officer Chuck Butler said the company expected adjusted operating income of $555 million to $605 million, an increase of $105 million from its prior outlook. Butler attributed that increase primarily to recognizing IEEPA tariff receivables in the second quarter. Xerox’s Form 10-Q, filed with the Securities and Exchange Commission on August 6, recorded a $105 million reduction to cost of sales in connection with those receivables, the notice says. It adds that related financing costs were recorded elsewhere over time.
Levi & Korsinsky says it is examining whether Xerox adequately explained the tariff-receivable accounting and its implications for the company’s reported results and guidance. The notice describes potential investor claims as a subject of investigation, not a finding of misconduct. The firm is asking investors who suffered losses to submit information for review or contact attorney Joseph E. Levi. The release identifies the notice as attorney advertising.
Why the Forecast Revision Matters
The July outlook increase and October reduction leave investors with questions about how much of the earlier improvement depended on the tariff-receivable accounting and how that benefit was explained. The company’s revised forecast is $105 million to $130 million below the July range, according to the notice. That change may matter to investors assessing Xerox’s expected operating performance and the disclosures they relied on when trading.
The legal notice is a separate development from Xerox’s forecast revision. An investigation can involve reviewing public statements, filings and investor losses; it does not by itself show that a securities claim is valid. Investors considering whether to respond should distinguish the law firm’s allegations and questions from established findings by a regulator or court. The notice also offers no estimate of potential recovery, and a review does not guarantee a lawsuit or compensation.
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From July Guidance to October Cut
The relevant events occurred over roughly three months. On July 30, Xerox’s CFO said the 2026 adjusted operating income outlook had risen to $555 million–$605 million, primarily because of the recognition of tariff receivables. The company’s August 6 Form 10-Q then recorded a $105 million cost-of-sales reduction tied to those receivables, according to the law firm’s account of the filing.
On October 29, Xerox cut the full-year range to $450 million–$475 million. Levi & Korsinsky’s announcement followed as an investor-investigation notice. The release does not include Xerox’s explanation for the forecast reduction, the full text of the company’s October announcement, or a response from Xerox to the investigation. Those omissions limit what can be concluded from the notice alone.
“The firm is investigating whether Xerox “may not have adequately disclosed how its tariff-receivable accounting shaped reported results and guidance.””
— Levi & Korsinsky
Key Questions Still Open
The notice does not explain why Xerox lowered its outlook or provide the company’s full rationale for the October revision. It also does not detail the assumptions behind the revised range or clarify how the tariff receivables and related financing costs affect the forecast across reporting periods. Xerox’s response to the investigation is not included in the source material.
It remains unknown whether Levi & Korsinsky will file a lawsuit, whether any regulator will examine the issue, or whether investors will ultimately have legally valid claims. The notice gives no purchase-date range for potentially eligible investors and does not identify a court, case number or class period. Whether a person has a claim would depend on specific facts, including transaction records and the relevant legal process.
Investor Records and Possible Legal Steps
Levi & Korsinsky is asking investors who experienced losses to contact the firm for a review. Its notice says brokerage statements or trade confirmations showing purchase dates, share amounts and prices, as well as any sale dates and prices, can help document transactions. The firm lists Joseph E. Levi as a contact by email or at (212) 363-7500.
The release says submitting information for review carries no upfront cost and describes any future action as generally handled on a contingency basis, with fees and expenses subject to court approval. Those statements come from the law firm; they do not establish that an investor is eligible for compensation. The next material developments would be any further explanation from Xerox, additional disclosures or filings, and whether the investigation leads to legal action.
Key Questions
What did Xerox change in its 2026 outlook?
Xerox cut its full-year adjusted operating income outlook on October 29 to $450 million–$475 million, from the July range of $555 million–$605 million described in the notice.
What is Levi & Korsinsky investigating?
The firm says it is examining whether Xerox adequately disclosed how $105 million in IEEPA tariff receivables affected reported results and the company’s guidance. The investigation is not a finding of wrongdoing.
Has a lawsuit been filed?
The source notice announces a pending investigation, but does not say that Levi & Korsinsky or investors have filed a lawsuit. Any future legal action remains uncertain.
What records might investors need for a review?
The law firm says brokerage statements or trade confirmations showing purchase dates, quantities, prices, and any later sales may help document an investor’s transactions and losses.
Does contacting the firm guarantee compensation?
No. The notice offers a review of potential claims but does not promise eligibility, a recovery or a particular outcome. Whether a claim exists would depend on the facts and any later legal proceedings.
Source: prnewswire.com
