SAN DIEGO and SAN FRANCISCO, April 21, 2015 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of Castlight Health, Inc. (NYSE: CSLT) has filed a federal securities fraud class action complaint in the Superior Court of the State of California, County of San Mateo. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1933 in connection with Castlight's March 14, 2014 initial public stock offering of Class B common stock. Castlight provides cloud-based software in the United States.
According to the complaint, Castlight failed to disclose in its registration statement for initial public offering the backlog the company was experiencing due to implementation delays. Specifically, the deployment of the company's technology was not adequately scalable to achieve the growth in revenues, and reduction of costs, to reach significant profitability. The complaint further alleges that Castlight's inability to scale its products, as well as a high rate of non-renewal, had a significant negative impact on gross margins. Since the company's March 14, 2014 IPO, Castlight stock has declined over 53% from the IPO price of $16 per share to $7.49 on April 21, 2015.
Castlight Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, [email protected], or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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