Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Nimble Storage, Inc.
Oklahoma City, OK (December 22, 2015) – On December 17, 2015, a securities class action lawsuit was filed in the United States District Court for the Northern District of California against Nimble Storage, Inc. (NYSE: NMBL). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is May 27, 2015 through November 19, 2015. More specifically, this litigation was filed because the Company touted its strong performance and provided strong financial projections for future performance starting May 27, 2015. The Company continued this through the class period and the Company’s stock rose on these comments.
The Company issued a press release on November 19, 2015 after the market closed announcing its financial results for the fiscal third quarter of 2016. The Company reported 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 Company acknowledged that its "shift in investment from commercial to enterprise business impacted our commercial revenue growth more than we anticipated." Nimble Storage lowered its guidance for fiscal fourth quarter of 2016 to a loss of $0.11-$0.13 per share on revenue of $87 to $90 million. This estimate is significantly below analysts’ forecasts that the company would break-even on revenue of $99.3 million. On this news, Nimble Storage stock fell $10.34 to close at $10.05 on November 20, 2015.
Plaintiff seeks to recover damages on behalf of all Nimble Storage, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, February 15, 2016 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to firstname.lastname@example.org, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.
Posted on Tue, December 22, 2015
by Robin Hester filed under