Class Action by Faruqi & Faruqi Vs. Fusion-io

Faruqi & Faruqi, LLP, a national securities law firm, reminds investors in Fusion-io, Inc. of the January 21, 2014 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against Fusion-io and certain executives.

A complaint has been filed on behalf of all persons who purchased Fusion-io securities between August 10, 2012 and October 23, 2013, inclusive in the Northern District of California.

The complaint alleges that the company and its executives violated federal securities laws with respect to its disclosures concerning its business, opportunities, and prospects.

Specifically, the action alleges that throughout the class period, Fusion-io, a computer and hardware systems company specializing in memory storage solutions, and its executives made a series of false and misleading statements concerning the company’s strong revenue guidance and anticipated demand from its strategic customers.

After the market closed on October 23, 2013, the company retracted its prior revenue guidance and disclosed that its expected gross margin in 2014 would fall. Following these announcements, analysts commented that competitive pressures facing Fusion-io were more significant than it had previously represented.

On this news, the company’s stock declined $3.16 per share, or over 24%, to close at $9.82 per share on October 24, 2013 on unusually heavy volume.