SAN DIEGO, Aug. 6, 2016 /PRNewswire/ -- Shareholder Rights Law Firm Johnson & Weaver, LLP is investigating potential violations of the federal and state securities laws by Hortonworks, Inc. (NASDAQ: HDP) and certain of its officers and board members. Hortonworks focuses on the development, distribution, and support of Hadoop open source project in the United States and internationally.
Specifically, a class action has been commenced in the USDC for the Northern District of California, on behalf of purchasers of Hortonworks securities between August 5, 2015 and January 15, 2016.
The Complaint alleges that throughout the Class Period, Defendants issued false and misleading statements to investors and failed to disclose that: (1) the Company misrepresented that it had sufficient cash and cash equivalents to fund 12 months of working capital and capital expenditure needs; (2) Hortonworks in actuality lacked the necessary cash to meet those expenditure requirements over that period of time; (3) Defendants were contemplating a significant offering to fund its operations; and as a result, Defendants' public statements were materially false and misleading at all relevant times.
After the market closed on Friday, January 15, 2016, Hortonworks announced it had retained Goldman Sachs to raise $100 million in a secondary offering. Analysts were shocked, with one stating, "We believe it will be incumbent on HDP during its roadshow to show why this offering, announced in this way, at this time, should not be interpreted as evidence of serious difficulty."
On this news, Hortonworks's stock fell 37% on January 19, 2016, the next trading day.
If you have held shares continuously prior to August 5, 2015, you may have standing to hold Hortonworks harmless from the damage the officers and directors caused by making them personally responsible. You may also be able to assist in reforming the Company's corporate governance to prevent future wrongdoing. If you wish to discuss your rights, please contact Jim Baker (firstname.lastname@example.org) by email or by phone at 619-814-4471.
About Johnson & Weaver, LLP:
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.
Johnson & Weaver, LLP
Jim Baker, 619-814-4471
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SOURCE Johnson & Weaver, LLP