SAN DIEGO & NEWBURY, United Kingdom--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Micro Focus International plc (NYSE: MFGP) have filed a class action complaint against the company's officers and directors for alleged violations of the Securities Act of 1933 pursuant to the company's registration statement and prospectus issued in connection with the merger of Micro Focus with Hewlett Packard Enterprise Company ("HPE"). Micro Focus, an infrastructure software company, develops, sells, and supports software products and solutions to federal, airlines, and healthcare industries internationally.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/micro-focus-international-plc
Micro Focus Accused of Misleading Investors About Its Merger
According to the complaint, Micro Focus' merger with HPE was valued at $8.8 billion and was projected to triple Micro Focus' revenues. Despite touting that the merger was a "compelling opportunity to create significant value for both companies' shareholders," Micro Focus failed to inform investors that: (i) the company was suffering from worsening revenue trends; (ii) HPE Software did not have the operational capabilities or loyal customer base to justify its purchase price or to reverse worsening revenue trends; and (iii) Micro Focus had failed to successfully integrate with HPE Software. The truth came to light when Micro Focus began to report disappointing financial results on September 6, 2017, eventually causing Micro Focus' ADS price to fall to $12.99 on March 22, 2018—a decline of more than 54% from its price on the date of the merger's close.
Micro Focus Shareholders Have Legal Options
If you would like more information about your rights and potential remedies, contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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