RADNOR, Pa.--(BUSINESS WIRE)--The law firm of Kessler Topaz Meltzer & Check, LLP reminds that an investor securities fraud class action lawsuit has been filed against Box, Inc. (NYSE: BOX) (“Box”) on behalf of those who purchased or otherwise acquired Box securities between November 28, 2018 and June 3, 2019, inclusive (the “Class Period”).
Box investors who purchased securities during the Class Period may, no later than August 5, 2019, seek to be appointed as a lead plaintiff representative of the class.
Investors who wish to discuss this securities fraud class action lawsuit or request additional information about this litigation are encouraged to contact Kessler Topaz Meltzer & Check attorneys James Maro, Jr. or Adrienne Bell at (844) 887-9500 (toll free) or online at: www.ktmc.com/box-inc-securities-class-action.
According to the complaint, Box provides a cloud content management platform that enables secure access to content.
The Class Period commences on November 28, 2018, when Box announced its third quarter 2018 financial results.
The complaint alleges that, on February 27, 2019, Box reported fourth quarter revenue that fell below investors’ expectations, citing longer sales cycles for seven-figure deals. Following this news, Box’s share price fell $4.64, or nearly 19%, to close at $20.24 on February 28, 2019.
Then, on June 3, 2019, after the market closed, Box lowered its fiscal 2020 revenue outlook to a range of $688 million to $692 million, from previous guidance of $700 million to $704 million, again citing longer sales cycles for its larger deals. Following this news, Box’s share price fell as much as $1.30, or more than 7%, to close at $17.18 per share on June 4, 2019.
The complaint further alleges that defendants Dylan Smith (“Smith”), the Chief Financial Officer during the Class Period, and Daniel J. Levin (“Levin”), a director of Box during the Class Period, took advantage of the artificially inflated price of Box stock resulting from the false statements by selling a significant amount of their personally held shares in the days and weeks preceding the February 27, 2019 and June 3, 2019 disclosures. Smith received proceeds of $1,699,589 from selling approximately 7% of his holdings. Levin received proceeds of $3,801,032 from selling approximately 60% of his holdings. Such dramatic selling was inconsistent with the prior trading practices of Smith and Levin.
The complaint alleges that, throughout the Class Period, the defendants failed to disclose to investors that: (1) Box was unable to close large deals within the quarter; (2) as a result, Box’s revenue would be materially impacted; and (3) as a result of the foregoing, the defendants’ positive statements about Box’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Box investors may, no later than August 5, 2019, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.