The legal action, filed in the Southern District of New York, alleges that Endava misled shareholders regarding the effectiveness of its internal financial controls. While management certified these controls as effective in September 2025, the complaint contends the company failed to disclose that specific customer and supplier agreements required deeper accounting scrutiny. Over the following year, Endava reported declining revenues and a significant goodwill impairment, culminating in the Board placing its Chief Financial Officer on administrative leave to facilitate an independent investigation.

By the time the investigation was made public on September 21, 2026, shares had plummeted from a peak of $10.18 to $2.11. Attorneys representing the plaintiffs argue that investors were kept in the dark about these accounting risks for over a year. Those seeking to participate as lead plaintiffs in the litigation have until November 30, 2026, to file with the court. Participation does not require court appearances or testimony, as the process is designed to handle claims collectively on behalf of affected shareholders.