NEW YORK, Jan. 25, 2016 /PRNewswire/ -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC notifies investors that a securities class action has been filed in the Superior Court of the State of California, County of San Mateo, against Ooma, Inc. ("Ooma" or the "Company") (NYSE: OOMA), and certain of its officers, on behalf of a class consisting of all persons or entities who purchased Ooma securities in or traceable to the Company's July 17, 2015 initial public stock offering (the IPO).
Ooma is a consumer telecommunications company based in Palo Alto, California, that allows its users to make phone calls anywhere inside the United States or anywhere inside Canada with low monthly service fees.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: at the time of Ooma's IPO, the Company's Registration Statement concealed that: (i) certain outsized prior fiscal year sales to its largest outside reseller — who was emphasized in the Company's Offering Documents to be a very important Ooma partner — were not recurring or being replaced in the fiscal year leading into the IPO; (ii) the Company's customer churn rate — emphasized repeatedly throughout the Offering Documents as being at an industry low rate of 0.55% — had increased significantly as of the IPO as a result of customers having endured eight-hour service outages in April and May 2015; (iii) technological difficulties in the Company's lead generation business were causing leads to get lost in the Internet before reaching their intended targets, thus negatively impacting sales of that service and the Company's business; (iv) Ooma's subscription revenue growth and operating and pretax profit margins were both falling; and (v) all of these problems had caused the Company's subscription retention rate to plummet and net losses to double on a year-over-year basis, as of the IPO.
On July 17, 2015, Ooma effectively raised $65 million in its IPO, employing the fabricated and deceitful Offering Documents, and priced its stock at $13 per share. Ooma's stock has been trading at about half the IPO price and as of the filing of this Complaint, traded at around $6 per share, causing tens of millions of dollars in damages for shareholders.
No Class has yet been certified in the above action. If you wish to review a copy of the Complaint or join the action, please visit the firm's site http://www.bgandg.com/#!ooma/ow2n3. To discuss this action, or for any questions, please contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email email@example.com. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. If you suffered a loss in Ooma you can 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 Peretz Bronstein or Yael Hurwitz 212-697-6484 | firstname.lastname@example.org
SOURCE Bronstein, Gewirtz & Grossman, LLC