LOS ANGELES--(BUSINESS WIRE)--The Schall Law Firm, a national shareholder rights litigation firm, announces the filing of a class action lawsuit against Micro Focus International plc (“Micro Focus” or “the Company”) (NYSE: MFGP) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
Investors who purchased the Company's American Depository Shares pursuant and/or traceable to the registration statement and prospectus (the “Registration Statement”) issued in connection with the merger of Micro Focus and Hewlett Packard Enterprise Company (“HPE”), which closed on September 1, 2017 (“the Merger”), are encouraged to contact the firm before July 23, 2018.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall, or Sherin Mahdavian, of the Schall Law Firm, 1880 Century Park East, Suite 404, Los Angeles, CA 90067, at 424-303-1964, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at email@example.com.
The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
According to the Complaint, Micro Focus made false and misleading statements to the marketplace. It alleges that the Company failed to disclose that HPE was experiencing significant and global customer account disruptions due to its de-merger with Hewlett Packard. HPE and Micro Focus were also suffering from employee attrition, which negatively impacted Micro Focus’s revenue trend and operational abilities. Micro Focus’s revenue trends were worsening and on pace to miss expectations in the market for its interim results reported for the six months ending on October 31, 2017. The Company was also suffering from sales execution problems in North America. HPE did not have key assets like a loyal customer base, key personnel, or operational capabilities to justify its purchase price. Micro Focus failed to put in place the necessary operations, staff, and plan to effectively integrate with HPE in order to increase the chances of enjoying a positive synergy between the two organizations. According to the complaint, the total enterprise value of the merger was allegedly inflated by more $3.4 billion. As a result of these points, Micro Focus’s ability to service the debt load it took on as part of the Merger was materially impaired. The lawsuit states that when the market learned the true facts of Micro Focus and the Merger, investors suffered damages.
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
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