Class Action Lawsuit Filed Vs. Violin Memory

Faruqi & Faruqi, LLP, a national securities law firm, reminds investors in Violin Memory, Inc. of the January 27, 2014 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against Violin Memory, certain executives and the underwriters of the company’s IPO.

A complaint has been filed on behalf of all persons who purchased or otherwise acquired Violin Memory common stock pursuant and/or traceable to the company’s September 26, 2013 IPO 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, operations, and prospects.

Specifically, the action alleges that Violin Memory failed to disclose in the prospectus and registration statement issued in connection with its IPO that reprioritization of certain federal agencies’ budgets affected by the federal budget negotiations and the possibility of a federal government shutdown would negatively impact the company’s sales and revenues.

On November 21, 2013, in an investor conference call, Defendant Donald G. Basile, president and CEO of Violin Memory, reported that the company was negatively impacted by the slowdown in spending by the federal government.

On this news, the Violin Memory’s common stock price dropped $2.89 per share, or over 48%, to close at $3.11 per share on November 22, 2013, on unusually high volume.