Xerox Sued by Investor Over Split

Xerox shares were lower Thursday on word that the company is being sued by its largest individual investor over its plan to split.

Author:: Anders Keitz
Publish date:: Oct 13, 2016 4:59 PM EDT

Xerox (XRX) - Get Report shares were lower Thursday on word that the company is being sued by its largest individual investor over its plan to split. Investor Darwin Deason filed a lawsuit claiming the division would violate a prior agreement reached with Xerox when it acquired the company he founded, Affiliated Computer Services, for $6.4 billion in 2010. Xerox announced in January that it would divide its copier and printer business from its business process outsourcing unit, which will become a new company called Conduent. As part of the division, Conduent would oversee Affiliated Computer Services, which Deason alleges would leave him with an investment in an "unattractive, low-growth" document technology business. Xerox expects the move to be complete by year's end.

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