Shareholder Rights Law Firm Johnson & Weaver, LLP Files Class Action Suit Against Nimble Storage, Inc.
06 February 2016 - 6:00PM
Business Wire
Johnson & Weaver, LLP (Johnson & Weaver) today announced
that it has filed a class action lawsuit in the United States
District Court for the Northern District of California on behalf of
purchasers of Nimble Storage, Inc. (“Nimble Storage”) (NYSE:NMBL)
securities during the period between May 27, 2015 and November 19,
2015 (the “Class Period”).
The complaint charges Nimble Storage and certain of its officers
and directors with violations of the Securities Exchange Act of
1934. Nimble Storage provides flash-optimized storage platforms
that enable the consolidation of all workloads and eliminate
storage silos by providing enterprises with improvements in
application performance and storage capacity.
The complaint alleges that during the Class Period, defendants
issued false and misleading statements and/or failed to disclose
adverse material information regarding the Company’s business and
prospects, including that Nimble Storage was being negatively
impacted by intense competition from well-entrenched, large
competitors who were slashing prices in order to maintain market
share, that Nimble Storage had made a conscious decision to focus
its sales and marketing efforts towards the large enterprises
market and to reduce sales efforts in the U.S. commercial market,
and that due to this change in sales strategy and the intense price
competition, Nimble Storage was losing sales in both sales
channels. As a result of these false statements and/or omissions,
the complaint alleges, Nimble Storage securities traded at
artificially inflated prices during the Class Period, and enabling
certain Company insiders to collectively sell more than 1.12
million shares of their personally held Nimble Storage securities
at artificially inflated prices for gross proceeds in excess of
$31.4 million.
Then on November 19, 2015, Nimble Storage announced fiscal 2016
third quarter financial results, reporting total revenue of $80.7
million, non-GAAP gross margin of 66.9%, a non-GAAP operating loss
of $10.8 million, or negative 13% of revenue, and a GAAP net loss
of $28.6 million, or $0.36 per basic and diluted share. The
defendants attributed the disappointing results to the shift in the
Company’s “investment from commercial to enterprise business,”
which “impacted [the Company’s] commercial revenue growth more than
. . . anticipated,” and its “enterprise investments . . . taking
longer to become fully productive.” On this news, the price of
Nimble Storage securities fell dramatically, with the price of the
Company’s common stock dropping $10.34 per share, or 51%, to close
at $10.05 per share on November 20, 2015.
Plaintiff seeks to recover damages on behalf of all purchasers
of Nimble Storage securities during the Class Period (the “Class”).
The plaintiff is represented by Johnson & Weaver, which has
extensive experience in prosecuting shareholder class and
derivative actions nationwide.
If you wish to serve as lead plaintiff, you must move the Court
no later than 60 days from December 17, 2015. If you wish to
discuss this action, have any questions concerning this notice, or
your rights or interests, or if you would like to request a copy of
the complaint as filed, please contact lead analyst Jim Baker
(jimb@johnsonandweaver.com) by email or by phone at
619-814-4471. Any member of the putative class may move the
Court to serve as lead plaintiff through counsel of their choice,
or may choose to do nothing and remain an absent class member.
About Johnson & Weaver,
LLP:
Johnson & Weaver, LLP is a nationally recognized shareholder
rights law firm with offices in California, New York and Georgia.
The firm represents individual and institutional investors in
shareholder derivative and securities class action lawsuits. For
more information about the firm and its attorneys, please visit
http://www.johnsonandweaver.com. Attorney advertising. Past results
do not guarantee future outcomes.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160205005909/en/
Johnson & Weaver, LLPJim Baker,
619-814-4471jimb@johnsonandweaver.com
NIMBLE STORAGE INC (NYSE:NMBL)
Historical Stock Chart
From Apr 2024 to May 2024
NIMBLE STORAGE INC (NYSE:NMBL)
Historical Stock Chart
From May 2023 to May 2024