Endava Hit by Securities Class Action After CFO Leave and Delayed Results
Endava (NYSE: DAVA) faces a securities class action on behalf of investors who bought its securities between September 4, 2025 and September 21, 2026, according to a press release from the law firm Hagens Berman. The suit follows a drop of about 25% in the share price on September 22, 2026, after the company disclosed management and potential accounting problems.
- A securities class action covers Endava investors who bought shares between September 4, 2025 and September 21, 2026.
- Endava shares fell over 25% on September 22, 2026, after the company disclosed CFO Mark Thurston's administrative leave and an internal investigation.
- The company said its outside auditors raised concerns about accounting for certain customer and supplier agreements.
- Quarterly and annual reports were delayed, according to the company.
- The lead plaintiff deadline is November 30, 2026.
What the lawsuit alleges
According to Hagens Berman, the litigation focuses on whether Endava's repeated assurances were proper. These include the statement that its "financial statements […] fairly present in all material respects the financial condition, results of operations and cash flows of the Company," as well as claims about the effectiveness of its internal control over financial reporting.
The complaint also targets the company's claim that its "pivot towards AI to establish Endava as an AI leader" was gaining "momentum." The firm alleges that during the class period Endava did not disclose that the accounting for certain customer and supplier agreements would require additional review. As a result, the complaint says, a delay in the release of Q4 and FY 2026 financial results was likely.
The September 21 disclosures
Doubts about Endava's assurances arose after the market closed on September 21, 2026, according to the release. That day the company announced the appointment of an interim CFO. This followed a Board decision, on the recommendation of the Audit Committee, "to place Mark Thurston, the Company's Chief Financial Officer, on administrative leave, effective September 21, 2026."
Endava also said it had started an internal investigation "which was initiated in response to the Company's outside auditors raising concerns about the Company's accounting treatment of certain customer and supplier agreements and related matters." In addition, it announced that its quarterly and annual reports would be delayed. Shares fell by more than 25% that day, per the release.
Investigation and deadlines
Hagens Berman says it continues to investigate possible violations of federal securities laws. Reed Kathrein, the partner leading the investigation, said: "We're focused on whether Endava may have to restate its historical financial statements and, if so, whether the adjustments implicate the company's claims that its AI pivot was gaining momentum."
The lead plaintiff deadline is November 30, 2026. The firm urges investors with substantial losses to submit them, and invites people with knowledge that could assist the inquiry to contact its attorneys. It also points to the SEC Whistleblower program, saying whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.
What it means for investors
The release is a law firm's advertisement and describes allegations, not findings. No court has ruled on the claims, and the possibility of a restatement is something the firm says it is examining rather than a confirmed outcome. For Endava shareholders who held shares during the class period, the lead plaintiff deadline of November 30, 2026 is the key date mentioned. The case also ties the company's AI strategy to its accounting credibility, since the complaint questions both.
