Endava Faces Securities Lawsuit Following Accounting Probe
A 25% share price collapse on September 22, 2026, has triggered a securities class action against Endava plc. The litigation targets the company’s financial disclosures and leadership after an internal investigation into accounting practices forced the firm to delay its annual results and place its CFO on administrative leave.
The lawsuit, spearheaded by the firm Hagens Berman, seeks to represent investors who purchased DAVA securities between September 4, 2025, and September 21, 2026. Plaintiffs allege the company misled the market by repeatedly touting the accuracy of its financial statements and the success of its strategic pivot toward AI. These assurances, according to the complaint, masked underlying issues with the accounting treatment of key customer and supplier agreements.
Market confidence evaporated on September 21, 2026, when Endava announced that CFO Mark Thurston had been placed on administrative leave. The company confirmed that its audit committee initiated an internal probe following concerns raised by outside auditors. Consequently, the firm postponed its Q4 and fiscal year 2026 financial filings. Lead partner Reed Kathrein noted that the firm is now investigating whether historical financial statements require restatement and if the company’s claims regarding its AI momentum were inflated. Investors seeking to participate in the class action must meet a lead plaintiff deadline of November 30, 2026.
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