Endava Faces Class Action Lawsuit After Accounting Disclosures

The investigation, spearheaded by the law firm Hagens Berman, centers on whether Endava misled investors regarding the accuracy of its financial statements and the strength of its artificial intelligence strategy. Questions have emerged concerning the company's internal controls after auditors raised red flags about the accounting treatment of specific customer and supplier agreements. These concerns forced a delay in the release of Endava’s fourth-quarter and fiscal year 2026 financial results.

The volatility intensified on September 21, 2026, when the company announced that Mark Thurston had been placed on administrative leave. Hagens Berman partner Reed Kathrein noted that the firm is investigating whether historical financial statements require restatement and if those adjustments undermine the company’s previous claims regarding its AI momentum. Investors who suffered losses during the class period have until November 30, 2026, to apply as lead plaintiffs in the ongoing litigation.