SAN DIEGO & SAN FRANCISCO--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Pivotal Software, Inc. (NYSE: PVTL) filed a class action complaint against the company for alleged violations of the Securities Act of 1933 pursuant to its April 2018 initial public offering ("IPO"). Pivotal Software is a cloud platform technology.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/pivotal-software-inc/
Pivotal Accused of Inflating IPO Price
According to the complaint, Pivotal Software went public in an initial public offering in April 2018 for $638 million in gross proceeds. However, Pivotal failed to disclose it was already experiencing diminished growth prospects as customers and industry sentiment shifted away from Pivotal's principal offering because it was outdated and incompatible with the industry standard platform. As the truth was revealed, Pivotal shares plummeted. On June 4, 2019, Pivotal reported disappointing financial and operating results, which it attributed to sales execution challenges with its disjointed product offering and the need to reengineer its primary PAS. On this news, Pivotal's stock fell over 40% to close at $10.89 per share.
Pivotal Software Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo 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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