Nimble Storage investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, 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, Nimble Storage stock traded at artificially inflated prices during the Class Period, reaching as high as $31.60 per share, and enabling certain Company insiders to collectively sell more than 1.12 million shares of their personally held Nimble Storage common stock 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."
Following this news, the price of Nimble Storage common stock fell $10.34 per share, or 51%, to close at $10.05 per share on November 20, 2015.
If you are a member of the class described above, you may no later than February 16, 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.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706