RADNOR, Pa., May 24, 2018 (GLOBE NEWSWIRE) -- Kaskela Law LLC announces that a shareholder class action complaint has been filed against Micro Focus International plc (NYSE: MFGP ) (“Micro Focus” or the “Company”) on behalf of investors who purchased or acquired Micro Focus American Depositary Shares issued in connection with the Company’s 2017 merger with Hewlett Packard Enterprise Company (“HPE”) (the “Merger”).
IMPORTANT DEADLINE: Investors who acquired Micro Focus shares pursuant to the Company’s merger with HPE may, no later than July 23, 2018 , seek to be appointed as a lead plaintiff representative of the investor class.
Micro Focus investors are encouraged to contact Kaskela Law (D. Seamus Kaskela, Esq.) at (484) 258 – 1585 or (888) 715 – 1740 to discuss their legal rights and options with respect to this action. Investors may also visit www.kaskelalaw.com/micro-focus for additional information about this action, or to submit their information for confidential review.
The shareholder class action complaint alleges that Micro Focus and other defendants made false and misleading statements and/or failed to disclose to investors that: (1) HPE Software was experiencing significant disruptions in global customer accounts as a result of its de-merger from HP, which had materially impacted HPE Software’s ability to retain customers and for Micro Focus to recognize claimed synergies from the Merger; (2) HPE Software and Micro Focus were experiencing massive employee attrition, including the loss of key sales personnel, and that this loss had adversely impacted the Company’s operational capabilities and revenue trends; (3) Micro Focus was suffering worsening revenue trends and was on pace to significantly miss market expectations for its interim results in its core legacy business for the six months ended October 31, 2017 – with revenues for the Company’s Existing Products portfolio ultimately declining 7% during the period and its licensing revenues in this segment declining 17% during this time – and that these worsening revenue trends were accelerating; (4) Micro Focus was experiencing significant sales execution problems in its North America region; (5) HPE Software did not have the operational capabilities, loyal customer base, products or key personnel to justify its purchase price or to reverse worsening revenue trends; (6) Micro Focus had failed to put in place the operations, procedures and personnel necessary to integrate successfully with HPE Software, or conduct sufficient due diligence, so as to provide a reasonable likelihood that the purported synergies from the Merger would be realized; (7) the total enterprise value for the Merger was artificially inflated by more than $3.4 billion; and (8) as a result of the foregoing, the Company’s ability to service the increased debt load it incurred as a result of the Merger had been materially impaired.
Investors who acquired Micro Focus shares pursuant to the Company’s 2017 merger with HPE are encouraged to contact Kaskela Law prior to July 23, 2018 . Kaskela Law exclusively prosecutes shareholder actions in state and federal courts throughout the country on behalf of investors. For additional information about Kaskela Law please visit www.kaskelalaw.com .
CONTACT:
KASKELA LAW LLC D. Seamus Kaskela, Esq. 201 King of Prussia Road Suite 650 Radnor, PA 19087 (484) 258 – 1585 (888) 715 – 1740 www.kaskelalaw.com
