Shareholder Class Action Filed Against Hortonworks, Inc. - HDP

Mar 07, 2016, 16:34 ET from Kessler Topaz Meltzer & Check, LLP

RADNOR, Pa., March 7, 2016 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP announces that a shareholder class action lawsuit has been filed against Hortonworks, Inc. (NASDAQ: HDP) ("Hortonworks" or the "Company") on behalf of purchasers of the Company's common stock between November 4, 2015 and January 15, 2016, inclusive (the "Class Period").

Hortonworks shareholders who wish to discuss this action and their legal options are encouraged to contact Kessler Topaz Meltzer & Check, LLP (Darren J. Check, Esq., D. Seamus Kaskela, Esq. or Adrienne O. Bell, Esq.) at (888) 299 – 7706 or at info@ktmc.com

For additional information about this lawsuit, or to request information about this action online, please visit https://www.ktmc.com/new-cases/hortonworks-inc.

Hortonworks focuses on the development, distribution, and support of the Hadoop open source project in the United States and internationally. 

The shareholder class action complaint alleges that Hortonworks and certain of its executive officers made a series of false and misleading statements, and failed to disclose material adverse facts, to investors regarding the Company's business, operations, cash position, prospects, and internal controls.  As detailed in the complaint, in November 2015 the defendants allegedly: (i) misrepresented that Hortonworks had sufficient cash and cash equivalents to fund 12 months of working capital and capital expenditure needs; (ii) failed to disclose that Hortonworks in actuality lacked adequate cash to meet those working capital and capital expenditure requirements over that period of time; (iii) failed to disclose that, as a result, defendants were contemplating a significant offering to fund its operations; and (iv) as a result of the foregoing, defendants' public statements were materially false and misleading at all relevant times.

On Friday, January 15, 2016, post-market, Hortonworks announced it had retained Goldman Sachs to raise $100 million in a secondary stock offering.  Analysts expressed surprise, with one analyst stating: "We believe it will be incumbent on HDP during its roadshow to show why this offering, announced in this way, at this time, should not be interpreted as evidence of serious difficulty."  On this news, shares of Hortonworks' common stock fell $6.13, or 37 percent, to close the following trading day at $10.44 per share.

Hortonworks shareholders who purchased their securities during the Class Period (November 4, 2015 through January 15, 2016) may, no later than April 29, 2016, petition the Court to be appointed as a lead plaintiff representative of the class.  For additional information please visit https://www.ktmc.com/new-cases/hortonworks-inc.

Members of the purported class may petition the Court to be appointed as a lead plaintiff representative through Kessler Topaz Meltzer & Check or other counsel, or may choose to do nothing and remain an absent class member.   A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation.  In order to be appointed as a lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class in the action.  Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff. 

Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country.  Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.  The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars).  The complaint in this action was not filed by Kessler Topaz Meltzer & Check.  For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com.

CONTACT:
Kessler Topaz Meltzer & Check, LLP
Darren J. Check, Esq.
D. Seamus Kaskela, Esq.
Adrienne O. Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(888) 299 – 7706
(610) 667 – 7706
info@ktmc.com

 

 

 

SOURCE Kessler Topaz Meltzer & Check, LLP



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