LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”) announces that it has filed a class action lawsuit in the United States District Court for the Northern District of California, captioned Abera v. Pivotal Software, Inc. et al., (Case No. 3:19-cv-03601), on behalf of persons and entities that purchased or otherwise acquired Pivotal Software, Inc. (NYSE: PVTL) (“Pivotal Software” or the “Company”) securities pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s April 2018 initial public offering (“IPO” or the “Offering”). Plaintiff pursues claims under Sections 11 and 15 of the Securities Act of 1933 (the “Securities Act”).
Investors are hereby notified that they have until August 19, 2019 to move the Court to serve as lead plaintiff in this action.
If you are a shareholder who suffered a loss, click here to participate.
In April 2018, Pivotal Software completed its initial public offering (“IPO”) in which it sold more than 42 million shares of its common stock at $15.00 per share.
On June 4, 2019, after the market closed, the Company conveyed its first quarter 2019 financial and operating results, which were negatively impacted by “sales execution and a complex technology landscape.” Also, Wedbush Securities analyst Daniel Ives asserted in addition to the “disastrous” operating results, that the Company’s management team, “does not have a handle on the underlying issues negatively impacting its sales cycles and the activity in the field which gives us concern that this quarter will be the start of some ‘dark days ahead’ for Pivotal (and its investors).”
On this news, the Company’s share price fell $7.65, or more than 41%, to close at $10.89 per share on June 5, 2019, thereby injuring investors.
The complaint filed in this class action alleges that the Registration Statement was false and misleading and omitted to state material adverse facts. Specifically, Defendants failed to disclose to investors: (1) that the Company’s Pivotal Application Service (“PAS”) product was not compatible with the industry-standard Kubernetes platform; (2) that, as a result, the PAS product faced reduced demand as the industry shifted away from the outdated product; (3) that the Company’s Pivotal Container Service (“PKS”) product, though compatible with Kubernetes, was severely limited and could not meet large enterprises’ needs; (4) that, as a result, the Company could not adequately meet industry demand for a Kubernetes-compatible product that met customers’ wide range of needs; (5) that, as a result of the foregoing, the Company was experiencing deferred sales, lengthening sales cycles, and diminished growth; (6) that, as a result, the Company would be forced to reengineer its flagship PAS product to be compatible with Kubernetes; and (7) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
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If you purchased Pivotal Software securities during the Class Period, you may move the Court no later than August 19, 2019 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to email@example.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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