Block & Leviton LLP Announces That a Class Action Lawsuit Was Filed Against Violin Memory, Inc. for Violations of the Federal Securities Laws
BOSTON, Dec. 4, 2013 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a Boston-based law firm representing investors nationwide, announces that a class action lawsuit was filed in the United States District Court for the Northern District of California against Violin Memory, Inc. ("Violin" or the "Company") (NYSE: VMEM) and certain of its officers and directors. The complaint alleges that the Company's Registration Statement and Prospectus for its initial public offering ("IPO") were materially untrue when issued. According to Violin, the IPO raised proceeds of $162 million. The underwriters of the IPO, who are also named as Defendants, include: J.P. Morgan, Deutsche Bank, Merrill Lynch, Barclays, among others.
The complaint alleges that the Company failed to disclose that, prior to the IPO, Violin's sales and revenues had been materially impacted by the reprioritization of federal agencies' budgets due to the uncertainty surrounding the negotiations over the federal budget and the possibility of a shutdown of the federal government. This news came to light on November 21, 2013, less than two months after its IPO, when the Company shocked the market by disclosing that Violin's third quarter net loss widened to $34.1 million, nearly twice the amount analysts expected and that its fourth quarter revenues would be $30 million to $32 million, which drastically trailed the average analyst estimate of $43 million. On this disclosure, the Company's share price plummeted, falling from $6.00 per share on November 21, 2013 to close at $3.11 per share on November 22, 2013.
If you have purchased or acquired Violin stock, and have any information relevant to this litigation, or have questions about your legal rights, please contact attorney Steven Harte of Block & Leviton LLP at (617) 398-5600 or email him at Steven@blockesq.com. Also, you may, no later than January 27, 2014, request that the Court appoint you as Lead Plaintiff for the Class. You may also retain counsel of your choice and you need not take any action at this time to be a class member.
Block & Leviton is a Boston-based law firm representing investors for violations of securities laws. The firm's lawyers have collectively been prosecuting securities cases on behalf of investors for over 50 years.
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BLOCK & LEVITON LLP
Steven Harte, Esq.
SOURCE Block & Leviton LLP