BERKELEY, Calif.--(BUSINESS WIRE)--Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, today announced it is investigating the alleged omission of third-quarter sales trends by Violin Memory Inc. (NYSE:VMEM) (“Violin” or “the Company”) in its SEC filings for its recent IPO. Persons with knowledge and investors who have suffered significant financial losses may contact a Hagens Berman attorney working on the investigation by emailing VMEM@hbsslaw.com.
The securities fraud class-action lawsuit has been filed on behalf of investors who purchased stock between Sept. 23, 2013, and Nov. 26, 2013 (the “Class Period”). It alleges that Violin misled investors regarding its financial prospects. Specifically, it claims that the Company did not appropriately warn investors of the risks posed by a possible pending U.S. Federal Government shutdown. Analysts also believe the company has not come clean in identifying other headwinds it was facing.
The deadline to file for lead plaintiff in a recently filed securities fraud class action is Jan. 27, 2014.
Investors who purchased stock during the Class Period can contact Hagens Berman Partner Reed Kathrein, who is leading the firm’s investigation, by calling (510) 725-3000. Additional information is available at http://hb-securities.com/investigations/VMEM.
Violin successfully held its IPO on Sept. 27, 2013, selling 18 million shares of common stock at $9.00 per share. However, on Nov. 21, 2013, it reported third-quarter results, noting the impact of reduced federal spending and a government shutdown. The price of the stock declined nearly 50 percent the next day.
“Violin walked away from its IPO with $162 million in new capital,” said Mr. Kathrein. “But the stock price has since collapsed, and we are investigating whether investors were misled about the value of their investment in the period leading up to the IPO.”
Persons with non-public information should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.
Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in nine cities, including the San Francisco Bay Area where this lawsuit has been filed. The Firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the law firm and its successes can be found at www.hbsslaw.com. The Firm’s Securities Newsletter is at http://www.hb-securities.com/newsletter.