The legal action brought by Levi & Korsinsky, LLP highlights a stark divergence between Endava's public growth projections and its financial reality. Throughout the class period, the company touted record order books and operational agility while simultaneously maintaining that its internal controls were effective. However, the situation shifted dramatically on September 21, 2026, when Endava disclosed that its Chief Financial Officer had been placed on administrative leave. This move followed the initiation of an Audit Committee investigation into the accounting treatment of specific customer and supplier agreements.

The market impact was immediate and severe. DAVA shares, which had reached a class period high of $10.18 in September 2025, plummeted to $2.11 by September 22, 2026. This 79% decline included a single-day drop of 24.37%. The complaint alleges that the company failed to disclose that its accounting methods required additional review and that it had reason to doubt the integrity of its internal financial reporting. Joseph E. Levi, lead attorney on the case, argues that companies have an obligation to disclose known risks when providing specific performance projections to the public.