SAN FRANCISCO--(BUSINESS WIRE)--The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been brought on behalf all purchasers of the securities of Violin Memory, Inc. (“Violin Memory” or the “Company”) (NYSE:VMEM) between September 27, 2013 and November 21, 2013, inclusive (the “Class Period”), including all purchasers of Violin Memory common stock pursuant or traceable to the Company’s Registration Statement and Prospectus issued in connection with its September 27, 2013 initial public offering (the “IPO”).
If you purchased the securities of Violin Memory during the Class Period and/or pursuant or traceable to the Registration Statement and Prospectus issued in connection with the Company’s IPO, you may move the Court for appointment as lead plaintiff by no later than January 27, 2014. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Violin Memory investors who wish to learn more about the action and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1 800 541-7358.
Background on the Violin Memory Securities Class Litigation
The actions charge Violin Memory, certain of its officers and directors, and the underwriters of the IPO with violations of federal securities laws. Violin Memory develops and supplies memory-based storage systems to enhance storage performance with high-speed applications, servers, and networks in the Americas, Europe, and the Asia Pacific.
The actions allege that throughout the Class Period, defendants made false and misleading statements and failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, defendants misrepresented and/or failed to disclose, among other things, that at the time of the IPO, Violin Memory’s sales had already been adversely affected by the looming 2013 U.S. government shutdown. The shutdown was important to Violin Memory because the U.S. government is a large indirect customer of the Company. Moreover, the Company’s sales and research and development expenses had substantially grown during the third quarter of fiscal 2014, increasing its cash burn-rate to an unsustainably high rate based on the Company’s cash on hand. Thus, Violin Memory’s sales growth and profit margins were allegedly declining, diminishing its profits at the time of the IPO.
On November 21, 2013, Violin Memory announced disappointing financial results for the third quarter of fiscal 2014. The Company reported a larger than expected net loss of $0.85 per share, and sales of $28.3 million which was below analysts’ expectations. On the same day, during an earnings conference call with analysts and investors, defendants disclosed that prior to the IPO, “[a]s a result of unexpected reprioritization of budgets ahead of the federal government shutdown, some . . . [of the Company’s] forecasted [sales] were canceled and others were deferred to future quarters pending funds being allocated to the project[s],” and that Violin Memory incurred increased sales and marketing costs during the third quarter of 2014. On this news, Violin Memory’s stock price fell $2.89 per share, or over 48%, from a closing price of $6.00 on November 21, 2013, to close at $3.11 on November 22, 2013.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
Since 2003, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs’ law firms in the nation. In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs’ law firms in the United States to receive this honor for the last ten consecutive years.
For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.
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