Shareholder Class Action Filed Against Hortonworks, Inc.

Hortonworks investors may receive additional information about the case by clicking the link "Join this Class Action" above.     

According to the complaint, Hortonworks focuses  on  the development,  distribution,  and support  of  the Hadoop open  source project  in the  United States  and internationally.   It offers Hortonworks Data Platform, an enterprise-grade data  management platform that purportedly  enables its customers  to capture, store,  process, and analyze increasing amounts of existing and new data types without the need to replace  their  existing  data center  infrastructure.   The  Company  also provides Hortonworks Sandbox,  a personal,  portable, and free  to use  Hadoop environment purportedly designed to offer the easiest way to get started  with Enterprise Grade  Hadoop  and the  Hortonworks  Data Platform.   Hortonworks  also provides  support  subscription,  and  training  and   consulting services – from which it derives substantially all of its revenues.

The Complaint  alleges  that  throughout the  Class  Period,  Defendants  made materially false and misleading  statements regarding the Company’s  business, operations, cash position, prospects, and internal controls.  Specifically, in November 2015, Defendants: (i) misrepresented that Hortonworks had  sufficient cash and cash  equivalents to fund  12 months of  working capital and  capital expenditure needs;  (ii)  failed to  disclose  that Hortonworks  in  actuality lacked adequate cash  to meet  those working capital  and capital  expenditure requirements over that  period of time;  (iii) failed to  disclose that, as  a result, Defendants  were  contemplating a  significant  offering to  fund  its operations; and  (iv)  as  a  result  of  the  foregoing,  Defendants’  public statements were materially false and misleading at all relevant times.

On Friday,  January  15,  2016,  post-market,  Hortonworks  announced  it  had retained Goldman  Sachs  to  raise  $100 million  in  a  secondary  offering. Analysts expressed  surprise,  with  one  stating,  “We  believe  it  will  be incumbent on HDP during its roadshow  to show why this offering, announced  in this way,  at this  time, should  not be  interpreted as  evidence of  serious difficulty.”

Following this news, Hortonworks’s  stock fell  $6.13, or  nearly 37%,  to close  at $10.44 on January 19, 2016.

If you are a member of the class described above, you may no later than April 29, 2016 move the Court to serve as lead plaintiff of the class, if you so choose. 

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation.  In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class.  Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.

Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter.  If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at [email protected]. For more information about Kessler Topaz Meltzer & Check, LLP, please visit our website at https://www.ktmc.com. If you would like additional information about the suit, please fill out the attached form as promptly as possible and return it by fax to 610-667-7056, or by mail in the enclosed envelope.

CONTACT:
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087 1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at [email protected]