NEW YORK, Jan. 22, 2016 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Nimble Storage, Inc. ("Nimble Storage" or the "Company")(NYSE: NMBL) and certain of its officers. The class action, filed in United States District Court, Northern District of California, and docketed under 15-cv-05991, is on behalf of a class consisting of all persons or entities who purchased Nimble Storage securities between May 27, 2015 and November 19, 2015 inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased Nimble Storage securities during the Class Period, you have until February 15, 2016 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 firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Defendant Nimble Storage provides flash-optimized storage platforms.
The complaint alleges that throughout the Class Period, defendants issued false and misleading statements and/or failed to disclose adverse material information regarding the Company's business and prospects, including that Nimble Storage was being negatively impacted by intense competition from well-entrenched, large competitors who were slashing prices in order to maintain market share, that Nimble Storage had made a conscious decision to focus its sales and marketing efforts towards the large enterprises market and to reduce sales efforts in the U.S. commercial market, and that due to this change in sales strategy and the intense price competition, Nimble Storage was losing sales in both sales channels. As a result of these false statements and/or omissions, Nimble Storage stock traded at artificially inflated prices during the Class Period, reaching as high as $31.60 per share, and enabling certain Company insiders to collectively sell more than 1.12 million shares of their personally held Nimble Storage common stock at artificially inflated prices for gross proceeds in excess of $31.4 million.
On November 19, 2015, after the close of the markets, Nimble Storage issued a press release announcing its financial results for the fiscal third quarter of 2016, the period ending October 31, 2015. For the quarter, the Company reported total revenue of $80.7 million, non-GAAP gross margin of 66.9%, a non-GAAP operating loss of $10.8 million or negative 13% of revenue, and a GAAP net loss of $28.6 million, or $0.36 per basic and diluted share.
In reaction to these announcements, on November 20, 2015, the price of Nimble Storage common stock fell $10.34 per share, or 51%, to close at $10.05 per share, on heavy trading volume.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, 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