Box investors may receive additional information about the case by clicking the link "Submit Your Information" above.
According to the complaint, Box provides a cloud content management platform that enables secure access to content.
The Class Period commences on November 28, 2018, when Box announced its third quarter 2018 financial results.
The complaint alleges that, on February 27, 2019, Box reported fourth quarter revenue that fell below investors’ expectations, citing longer sales cycles for seven-figure deals. Following this news, Box’s share price fell $4.64, or nearly 19%, to close at $20.24 on February 28, 2019.
Then, on June 3, 2019, after the market closed, Box lowered its fiscal 2020 revenue outlook to a range of $688 million to $692 million, from previous guidance of $700 million to $704 million, again citing longer sales cycles for its larger deals. Following this news, Box’s share price fell as much as $1.30, or more than 7%, to close at $17.18 per share on June 4, 2019.
The complaint further alleges that defendants Dylan Smith (“Smith”), the Chief Financial Officer during the Class Period, and Daniel J. Levin (“Levin”), a director of Box during the Class Period, took advantage of the artificially inflated price of Box stock resulting from the false statements by selling a significant amount of their personally held shares in the days and weeks preceding the February 27, 2019 and June 3, 2019 disclosures. Smith received proceeds of $1,699,589 from selling approximately 7% of his holdings. Levin received proceeds of $3,801,032 from selling approximately 60% of his holdings. Such dramatic selling was inconsistent with the prior trading practices of Smith and Levin.
The complaint alleges that, throughout the Class Period, the defendants failed to disclose to investors that: (1) Box was unable to close large deals within the quarter; (2) as a result, Box’s revenue would be materially impacted; and (3) as a result of the foregoing, the defendants’ positive statements about Box’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you are a member of the class described above, you may no later than August 5, 2019 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. Returning the attached form or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her 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 1-844-887-9500 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-844-887-9500 (toll free) or 1-610-667-7706
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