SAN DIEGO & SUNNYVALE, Calif.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of NetApp, Inc. (NASDAQ: NTAP) filed a class action complaint for alleged violations of the Securities Exchange Act of 1934 between May 22, 2019 and August 1, 2019. NetApp provides software, systems, and services to manage and share data on-premises, and private and public clouds worldwide.
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NetApp Accused of Misleading Shareholders
According to the complaint, in May 2019, NetApp announced its full year 2019 financial results, touting increases in net revenue and income and an increase of $4.09 in earnings per share. In June 2019, NetApp reaffirmed these results in its Form 10-K, despite also acknowledging risks that could affect its business, including that most of its revenues came from large, recurring purchases from clients and that any cancellations or delays in these purchases could negatively impact NetApp's revenues. However, what NetApp failed to disclose was that it was already experiencing material negative impacts on its revenue due to the company's inability to close large deals within the quarter. Then, on August 1, 2019, NetApp revealed the reality of its financial situation when it announced lowered than expected first quarter 2019 adjusted earnings and net revenue and lowered its first quarter 2020 net revenue from a range of $1.315 to $1.465 billion to a range of $1.22 to $1.23 billion and announced its 2020 net revenue was expected to decline between 5% to 10% year-over-year. On this news, NetApp's share price fell $11.67, or over 20%, to close at $46.04.
NetApp, Inc. (NTAP) Shareholders Have Legal Options
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