SAN DIEGO and SANTA CLARA, Calif., Dec. 4, 2013 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of Violin Memory, Inc. (NYSE: VMEM) has filed a federal securities fraud class action complaint in the U.S. District Court for the Northern District of California. The complaint alleges that certain officers, directors, and underwriters of the company violated the Securities Act of 1933 in connection with the company's September 26, 2013, initial public offering. Violin Memory develops and supplies memory-based storage systems to bring storage performance in line with high-speed applications, servers, and networks worldwide.
Violin Memory Accused of Filing False and Misleading Registration Statement and Prospectus
Shares of Violin Memory fell $2.89 per share, or 48%, to close at $3.11 on November 22, 2013, when the company revealed to investors the extent to which the company had been negatively affected by the a slowdown in spending by the U.S. Government. According to the complaint, prior to the company's IPO, various federal agencies had begun to reprioritize their budgets in light of the possibility that the government would be shutdown and Violin Memory failed to disclose in its Registration Statement the significant adverse impact of the reorganization to the company's sales and revenues. As a result, the company's Registration Statement contained false and/or misleading statements in violation of the rules and regulations governing their preparation.
Violin Memory Shareholders Are Encouraged to Contact Shareholder Rights Law Firm Robbins Arroyo
If you invested in Violin Memory and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the information form on the firm's shareholder rights blog: www.robbinsarroyo.com/shareholders-rights-blog/violin-memory-inc
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and 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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SOURCE Robbins Arroyo LLP