Glancy Binkow & Goldberg Files Class Action Lawsuit Vs. Violin Memory

Glancy Binkow & Goldberg LLP, representing investors of Violin Memory, Inc., has filed a class action lawsuit in the United States District Court for the Northern District of California on behalf of a class consisting of all persons or entities who purchased the common stock of Violin pursuant and/or traceable to the company’s September 26, 2013, IPO.

The complaint charges Violin, certain of the company’s executive officers and directors, and the underwriters of the IPO with violations of federal securities laws. Violin develops and supplies memory-based storage systems to bring storage performance in line with high-speed applications, servers and networks in the Americas, Europe and the AsiaPac.

The complaint alleges that the prospectus and registration statement issued in connection with the company’s IPO were false and misleading because they failed to disclose that the company was being negatively impacted by known trends affecting its sales and revenues.

Specifically, the complaint alleges that the company failed to disclose that, prior to the IPO, the company’s sales and revenues were being negatively impacted by the reprioritization of federal agencies’ budgets due to the uncertainty surrounding the negotiations over the federal budget and the possibility of a shutdown of the federal government.

On November 21, 2013, the company reported its 2014 fiscal third quarter financial results and disclosed that it had been negatively impacted by the slowdown in spending by the federal government in its first quarter as a public company. On this news, the company’s stock price declined $2.89 per share, or 48.17%, to close on November 22, 2013, at $3.11 per share, on unusually high volume.

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