NEW YORK, May 20, 2020 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in VMware, Inc. ("VMware" or the "Company") (NYSE: VMW) of the June 1, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in VMware, Inc. stock or options between March 30, 2019 and February 27, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/VMW. 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 protected]
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The lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of all those who purchased VMware securities between March 30, 2019 and February 27, 2020 (the "Class Period"). The case, Lamartina v. VMware, Inc. et al, No. 20-cv-02182 was filed on March 31, 2020 and has been assigned to Judge Edward J. Davila.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) VMware's reporting with respect to its backlog of unfilled orders was not in compliance with all relevant accounting and disclosure requirements; (2) the foregoing subjected the Company to a foreseeable risk of heightened regulatory scrutiny and/or investigation; and (3) as a result, the Company's public statements were materially false and misleading at all relevant times.
Specifically, on February 27, 2020, during after-market hours, VMware filed a Current Report on Form 8-K with the SEC, disclosing an SEC investigation into the Company's backlog of unfilled orders. Specifically, that Form 8-K advised investors that "[i]n December 2019, the staff of the Enforcement Division of the [SEC] requested documents and information related to VMware's backlog and associated accounting and disclosures." The Form 8-K also advised investors that, although "VMware is fully cooperating with the SEC's investigation," it was "unable to predict the outcome of this matter at this time."
On this news, VMware's stock fell from a closing price of $135.63 per share on February 27, 2020 to $120.52 on February 28, 2020—a $15.11 or 11.14% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who 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 to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding VMware's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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