High Probability of Bankruptcy (critical) According to a financial analysis from Macroaxis, Luxoft Holding has a 54% probability of bankruptcy. This figure is noted as being 33.47% higher than the Technology sector average and 63.19% higher than the broader market.. Inconsistent Russian Market Exit and Continued Operations (critical) Despite a public announcement in March 2022 about exiting the Russian market, Luxoft's subsidiary, Integriti Solutions LLC (almost 100% owned by Swiss-based Luxoft Global Operations GmbH), reportedly increased its revenue by 97% to 3.5 billion rubles in 2022. A statement from August 19, 2023, also noted that "Luxoft has increased the volume of orders of its remaining Russian subsidiary in 2022." This activity contradicts the company's stated position of making a "Clean Break" from Russia, posing a significant reputational and compliance risk.. Alleged Sanctions Violation (critical) A compliance-related search snippet explicitly mentions a "sanctions violation" that was inferred to have resulted from a sale. The text states, "it is entirely reasonable to infer that the sanctions violation thus resulted from the sale …". This indicates a serious breach of international sanctions.. Investor Investigations for Securities Law Violations (high) In 2018, multiple law firms, including Glancy Prongay & Murray LLP and the Law Offices of Howard G. Smith, announced investigations on behalf of Luxoft Holding, Inc. investors. The investigations concerned potential violations of federal securities laws by the company and its officers and directors.. Fraud Allegations in Lawsuit Proceeding (high) In the case of 'Lankau v. Luxoft Holding, Inc. et al', the defendants' motion to dismiss the plaintiff's claims was "granted in part and denied in part." The partial denial of the motion to dismiss indicates that some of the plaintiff's allegations, which included fraudulent claims, were deemed sufficient to proceed in court.. Client Concentration Risk (high) A news snippet from 2016 indicates that Luxoft's stock plunged due to issues at its number one client, Deutsche Bank. The article states, "The bad news: Frankfurt-based Deutsche, Luxoft's No. 1 client, was just coming off another big quarterly loss, prompting layoffs …". This highlights a significant business risk due to over-reliance on a single client.. Recruitment Scams Using Company Name (medium) A Reddit post describes a potential recruitment scam where an individual was allegedly hired for a copywriter position and then asked to pay 90 euros. The scam uses the Luxoft name on the Telegram platform, posing a reputational risk and indicating that the company's brand is being exploited for fraudulent purposes.