SAN DIEGO, May 27, 2015 /PRNewswire/ -- Robbins Geller Rudman & Dowd LLP ("Robbins Geller") (http://www.rgrdlaw.com/cases/sandisk/) today announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the Northern District of California on behalf of purchasers of SanDisk Corporation ("SanDisk") (NASDAQ: SNDK) publicly traded securities during the period between April 16, 2014 and April 15, 2015 (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from March 30, 2015. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/sandisk/. 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.
The complaint charges SanDisk and certain of its officers and directors with violations of the Securities Exchange Act of 1934. SanDisk is a global provider of flash storage products.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements and/or omitted adverse information regarding the Company's operations, sales and product development, including that the Company was experiencing production qualification delays on certain of its key products and lower than expected sales of enterprise products. Defendants also concealed problems associated with SanDisk's acquisition of Fusion-io, Inc. ("Fusion io") in June 2014. Subsequently, the Company was forced to announce drastically lower first quarter revenue estimates compared to prior forecasts and withdraw its 2015 forecasts entirely. As a result of defendants' false statements, SanDisk securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high of $107.83 per share on July 16, 2014. While SanDisk's stock price was artificially inflated, the Company's top officers and directors were able to sell over $35.8 million worth of their SanDisk stock.
On March 26, 2015, SanDisk announced that it expected revenue for the first fiscal quarter of 2015 to be approximately $1.3 billion, rather than the previously forecast revenue of $1.40 billion to $1.45 billion, "primarily due to certain product qualification delays, lower than expected sales of enterprise products and lower pricing in some areas of the business." Moreover, the Company announced that it expected these adverse trends to continue into 2015, and as a result, the Company would not be able to make its other forecasts for the quarter or meet its 2015 revenue guidance. As a result of this news, SanDisk's stock price fell $14.98 per share to close at $66.20 per share on March 26, 2015, a one-day decline of 18% on volume of 32.3 million shares.
Then, on April 15, 2015, after the market closed, SanDisk issued a press release announcing its first quarter fiscal 2015 financial results. The Company reported net income of $39 million, or $0.17 diluted earnings per share, and revenue of $1.33 billion for the quarter ended March 29, 2015. The Company also announced a write-down of $61 million associated with Fusion-io. As a result of this news, the price of SanDisk stock dropped $3.21 per share to close at $67.91 per share on April 16, 2015, a one-day decline of nearly 5% on volume of 23.6 million shares.
Plaintiff seeks to recover damages on behalf of all purchasers of SanDisk publicly traded securities during the Class Period (the "Class"). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller, with 200 lawyers in ten offices, represents U.S. and international institutional investors in contingency-based securities and corporate litigation. The firm has obtained many of the largest securities class action recoveries in history and was ranked number one in the number of shareholder class action recoveries in ISS's SCAS Top 50 report for 2014. Please visit http://www.rgrdlaw.com for more information.
SOURCE Robbins Geller Rudman & Dowd LLP