NEW YORK, March 24, 2017 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Gigamon Inc. ("Gigamon" or the "Company") (NYSE: GIMO) of the March 28, 2017 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of all those who purchased Gigamon securities between October 27, 2016 and January 17, 2017 (the "Class Period"). The case, Rodriguez v. Gigamon Inc. et al, No. 3:17-cv-00434 was filed on January 27, 2017.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making materially false and/or misleading statements and/or failing to disclose that: (1) Gigamon was suffering from reduced product bookings in its North America West region; (2) several of Gigamon's significant customer accounts deferred purchasing decisions into 2017; (3) Gigamon failed to properly include these trends in its financial guidance; and (4) as a result, Gigamon's statements about its business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
Specifically, on January 17, 2017, the Company announced its financial results for the fourth quarter and fiscal year 2016. The Company revealed preliminary fourth quarter 2016 revenue of $84.5 million to $85.0 million, lower than the Company's prior guidance of $91 million to $93 million. The Company's Chief Executive Officer, Paul Hooper, stated that "fourth quarter revenue was below our prior guidance" and 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."
On this news, Gigamon's share price fell from $44.05 on January 17, 2017 to a closing price of $31.40 on January 18, 2017 —a $12.65 or a 28.72% drop.
Request more information now by clicking here: www.faruqilaw.com/GIMO. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Gigamon's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
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SOURCE Faruqi & Faruqi, LLP