The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the its business, operations, and prospects. Specifically, Defendants failed to disclose that: (1) Gigamon was suffering reduced product bookings in its North America West region; (2) several of Gigamon's significant customers were deferring purchasing decisions into 2017; (3) Gigamon failed to properly include these trends in its financial guidance; and (4) consequently, Defendants' statements about Gigamon's business, operations, and prospects, including statements about its revenue guidance, were false and misleading and/or lacked a reasonable basis.
On January 17, 2017, Gigamon revealed its preliminary fourth quarter and 2016 fiscal year results. Gigamon also stated that fourth quarter revenue for the period ending December 31, 2016 would be "$84.5 million to $85 million compared to the company's prior guidance of $91 million to $93 million [announced on October 27, 2016]." Moreover, Gigamon said that "[f]ourth quarter revenue fell short primarily due to lower than expected product bookings in our North America West region, as several significant existing customer accounts deferred purchasing decisions into 2017." Following this news, Gigamon stock fell dropped $12.65 per share, or 28.7%, to close at $31.40 per share on January 18, 2017.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm's site: http://www.bgandg.com/gimo or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Gigamon you have until March 28, 2017 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
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