On August 9, 2023, Spruce Point Capital published a report raising “concerns about the accuracy of the Company’s cash liquidity.” Spruce Point Capital also alleged that it had “identif[ied] new evidence of accounting machinations ahead of Xylem’s acquisition” of Evoqua Water Technologies Corp.

On this news, Xylem’s stock price fell $2.82 to close at $102.00 per share on August 9, 2023, thereby injuring investors.