Another Class Action Filed Vs. Carbonite

A lawsuit has been filed by Faruqi & Faruqi, LLP, a national securities law firm in the U.S. District Court for the District of Massachusetts, on behalf of all those who purchased Carbonite, Inc.‘s common stock between February 7, 2019 and July 25, 2019.

The case, Luna v. Carbonite, Inc., et al., No. 19-cv-11662 was filed on August 1, 2019, and has been assigned to Judge Leo T. Sorokin.

The lawsuit focuses on whether the company and its executives violated federal securities laws by failing to disclose that:
(i) Carbonite’s Server Backup VM Edition was of poor quality and technologically flawed;
(ii) Carbonite was receiving poor reviews and complaints from customers about the Server Backup VM Edition; and
(iii) the poor quality and technological flaws of the Server Backup VM Edition were acting as a “disruptive” factor throughout the Carbonite salesforce and keeping that sales organization from closing opportunistically on several larger deals during fiscal 2019.

On July 25, 2019, Carbonite announced that it was withdrawing the Server Backup VM Edition from the marketplace and consequently lowering its financial projections for fiscal 2019 and 2020. The same day, Carbonite’s CEO announced he was leaving the company.

On this news, Carbonite’s share price fell from $23.90 per share on July 25, 2019 to a closing price of $18.01 on July 26, 2019: a $5.89 or a 24.64% drop.

Read also:
Class Action Lawsuits Filed Against Carbonite and NetApp
By Bragar Eagel & Squire
August 23, 2019 | Press Release
Class Action Lawsuit Vs. Carbonite by Bronstein, Gewirtz & Grossman …
Defendants made false and/or misleading statements.
August 21, 2019 | Press Release
… As Well as by Zhang Investor Law
To recover damages for Carbonite investors under federal securities laws
August, 21, 2019 | Press Release
Also Robbins Geller Rudman & Dowd Commenced Class Action Suit Against Carbonite
Failing to disclose adverse information regarding technological quality of Server Backup VM Edition
August 8, 2019 | Press Release
Once More Lawyer Filing of Class Action Lawsuit Vs. Carbonite …
The Schall Law Firm
August 7, 2019 | Press Release
… As Well as Former Louisiana Attorney General: Kahn Swick & Foti
Carbonite failing to disclose material information during class period, violating federal securities laws
August 7, 2019 | Press Release
Attorney Ademi & O’Reilly Investigates Possible Securities Fraud of Carbonite
As Server VM Edition, launched in October 2018, was technically substandard, of poor quality, and being rejected by customers.
July 31, 2019 | Press Release