WAYNE, Pa., Aug. 17, 2015 /PRNewswire/ -- Ryan & Maniskas, LLP announces that a class action lawsuit has been filed in the Superior Court of the State of California, County of Santa Clara on behalf of purchasers of common stock of MobileIron, Inc. ("MobileIron" or the "Company") (NASDAQ: MOBL) who purchased MobileIron securities pursuant to the company's Registration Statement and Prospectus issued in connection with its initial public offering ("IPO") on June 12, 2014.
MoblieIron shareholders may move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of MDC and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218 or to sign up online, visit: www.rmclasslaw.com/cases/mobl.
According to the complaint, MobileIron officials deceived the investing public and caused the price of its securities to be sold at artificially inflated prices. Specifically, MobileIron's Registration Statement omitted material information that was required to be disclosed—namely, that the company had recently been hacked and that its platform was vulnerable to security bugs. MobileIron went public on June 12, 2014, at $9.00 per share, and quickly traded up to close its first day of public trading at $11.02 per share. The following day, online insurance news journal PostOnline.co.uk published a story detailing that MobileIron's customer, Aviva plc, had its employees' mobile devices hacked. MobileIron was quoted as downplaying the event as an isolated incident.
Then, on June 23, 2014, a news article published by TheRegister.co.uk stated that on May 20, 2014, a hacker compromised the MobileIron administrative server and performed a "full wipe" of many of the mobile devices used by Aviva personnel. An Aviva employee revealed in the article that the breach caused the company millions in damages. In the wake of the incident, Aviva moved its impacted personnel onto a Blackberry service and entered discussions with MobileIron's reseller Esselar to cancel their contract. Despite the fact that the breach occurred weeks before MobileIron's IPO, the Offering Materials failed to disclose the breach, Aviva moving to Blackberry's services, and the likely impact that the publication of the breach would have on MobileIron's ability to secure contracts with large customers and keep customers on its perpetual licensing revenue model.
On April 22, 2015, MobileIron issued a press release announcing an inability to close multiple large deals from North American customers and a large shift by customers to its monthly subscription model, which resulted in lower billings and revenue. On the same day, the company issued another press release stating that its Chief Financial Officer was resigning. On this news, MobileIron stock fell $2.39 per share, or over 25%.
If you are a member of the class, you may request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.
Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan & Maniskas, LLP is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide. To learn more about the class action process, please visit: www.rmclasslaw.com.
SOURCE Ryan & Maniskas, LLP