NEW YORK, July 3, 2014 /PRNewswire/ -- Pomerantz LLP has filed a class action lawsuit against Infoblox, Inc. ("Infoblox" or the "Company") (NYSE: BLOX) and certain of its officers. The class action, filed in United States District Court, Northern District of California, and docketed under 5:14-cv-02644, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of Infoblox between September 6, 2013 and February 10, 2014, both dates inclusive (the "Class Period"). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Infoblox securities during the Class Period, you have until July 29, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at email@example.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Infoblox develops, markets, and sells automated network control solutions worldwide. Its appliance-based solution combines real-time IP address management with the automation of network control, and network change and configuration management processes in physical and virtual appliances.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business and operations. Specifically, Defendants made numerous statements regarding Infoblox's financial strength that were false and misleading in light of Defendants' concealment of the fats that: (i) the Company's Federal business prospects were weak and would continue to be weak for the foreseeable future; (ii) the Company had been implementing enormous discounting in order to maintain market share; and (iii) the Company was failing to close on big-ticket deals that had previously driven its revenue growth.
Infoblox insiders – including the Individual Defendants – sold significant amounts of Company stock at artificially inflated prices, reaping considerable profits at a time when these individuals were privy to material adverse information concerning the Company's financial prospects. The Individual Defendants and other directors and senior executives sold their shares after publicly providing guidance that they knew or should have known was baseless and unreasonable. Infoblox management further delayed correcting their previously-issued guidance in order to continue to sell shares at inflated prices.
On February 10, 2014, after the market close, Infoblox provided preliminary fiscal second quarter ("2Q") 2014 results and updated its outlook for fiscal year 2014. For the first time, the Company disclosed that it had been "discounting enormously to get deals." The Company revised its guidance downward both for its second quarter ending January 31, 20014 and for its fiscal year ending July 31, 2014. The Company announced that it now predicted revenue of $60 to $61 million for 2Q 2014, down from the previous expectation of $65 to $66 million and a non-GAAP earnings per share ("EPS") of $0.10 to $0.12, versus previous estimates of $0.09 to $0.11. For its full year outlook, Infoblox revised external revenue projections to $250 to $254 million, down from previous guidance over the last two quarters of $270 to $276 million. EPS was updated to be $0.30 to $0.34 diluted earnings per share, lower than previous guidance over the last two quarters for full year earnings of $0.44 to $0.54.
On this news, shares of Infoblox declined $15.95 per share, or over 48.12%, to close at $17.19 per share on February 11, 2014.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
SOURCE Pomerantz LLP