BERKELEY, Calif.--(BUSINESS WIRE)--Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, reminds investors of the Jan. 27, 2014 deadline to file for lead plaintiff in a securities fraud case against Violin Memory Inc. (NYSE: VMEM) (“Violin” or “the Company”). Investors who suffered significant financial losses related to the case are invited to email VMEM@hbsslaw.com for more information.
The securities fraud class-action lawsuit, filed on behalf of investors who purchased stock between Sept. 23, 2013 and Nov. 26, 2013, alleges that Violin misled investors regarding its financial prospects by omitting third-quarter sales trends in SEC filings for its IPO. For more information about the suit, please 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 per share. However, on Nov. 21, 2013, it reported third-quarter results, noting the negative financial impact of reduced federal spending and a government shutdown. The price of the stock declined nearly 50 percent, closing at $3.11 per share the next business day.
Since then, the Company has changed its personnel, first making the announcement that it was terminating CEO Donald Basile’s employment. Later, the Company’s COO Dixon Doll, Jr. stepped down earlier this month, “to pursue other personal and professional opportunities.”
Analysts believe the company has not come clean in identifying other headwinds it was facing. Hagens Berman continues to investigate allegations that Violin misled potential investors by failing to disclose the risks posed by a pending U.S. government shutdown.
“When companies are shifting upper positions as quickly as Violin Memory has been in the last month, we typically see that as a smoking gun that something isn’t right,” said Mr. Kathrein. “Hagens Berman is continuing to investigate their actions and lack of responsibility to shareholders.”
The deadline to file for lead plaintiff in a recently filed securities fraud class action is Jan. 27, 2014.
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.