SAN FRANCISCO, Dec. 18, 2015 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, alerts investors of the February 15, 2016 lead plaintiff deadline in the securities fraud class action lawsuit filed against Nimble Storage Inc. (NYSE: NMBL ) related to share price inflation and insider selling.
If you suffered losses in excess of $50,000 in transactions of Nimble Storage common stock between May 27, 2015 and November 19, 2015 , contact Hagens Berman Partner Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000, emailing NMBL@hbsslaw.com or visiting https://www.hbsslaw.com/cases/NMBL . The lawsuit was filed in the U.S. District Court for the Northern District of California and investors have until February 15, 2016 to move the court to act as lead plaintiff .
Investors learned the truth about Nimble Storage on November 19, 2015, when the Company announced its fiscal 2016 third quarter financial results. It reported a revenue drop of 13%, total revenue of $80.7 million, a non-GAAP operating loss of $10.8 million, and a GAAP net loss of $28.6 million. Nimble Storage attributed the disappointing results to the shift in the Company's focus from commercial to enterprises business. On news of the revenue drop, the price of Nimble Storage common stock fell $10.34 per share, or 51%, to close at $10.05 per share on November 20, 2015.This astonishing drop came on the heels of months of positive statements relating to the Company’s transition from a commercial focus to an enterprise focus.
The complaint alleges that during the class period, defendants concealed from investors that Nimble Storage was being negatively impacted by large competitors who were lowering their prices to maintain market share. Additionally, the Company misled investors by hiding the fact that its decision to focus sales and marketing efforts towards the large enterprises market and to reduce sales efforts in the U.S. commercial market was causing a drop in sales in both channels. As a result of the allegedly misleading statements, Nimble Storage stock traded at artificially inflated prices during the Class Period, reaching as high as $31.60 per share. This enabled Company insiders to collectively sell more than 1.12 million shares of their personally held Nimble Storage common stock at artificially inflated prices for gross proceeds in excess of $31.4 million.
During the last 3 months alone, NASDAQ reports that insiders sold a net 12,689,285 shares on NMBL stock while they stood by their projections.
If you experienced a loss in your investments in Nimble Storage common stock between May 27, 2015 and November 19, 2015, and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, please contact us for your no-cost evaluation.
Whistleblowers: Persons with non-public information regarding Nimble Storage should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email NMBL@hbsslaw.com .
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Contact: Reed Kathrein, 510-725-3000
