Law Firm Robbins Arroyo Filed Shareholder Derivative Complaint Vs. Carbonite

Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Carbonite, Inc. has filed a shareholder derivative complaint vs. the company’s officers and directors for breach of fiduciary duties and alleged violations of the Securities Exchange Act of 1934 between February 7, 2019 and the present.

Carbonite provides backup, DR, HA, and workload migration technology solutions in the United States.

Carbonite Accused of Misleading Investors
According to the complaint, in October 2018, Carbonite launched its Server Backup VM Editio” and expanded its Data Protection Console.

Carbonite’s CEO touted the combination as “one of the single biggest development efforts in [Carbonite’s] history” that would transform Carbonite into a leader in business data protection.

Carbonite’s officers and directors also asserted that the Server VM Edition would be a key driver in the growth of its financial performance and reiterated these positive financial projections in a series of press releases throughout the relevant period.

Despite positive projections, Carbonite’s CEO and CFO had been dumping their personal stocks from February 2019 to July 2019 for sale proceeds of almost $1.5 million.

Then, on July 25, Carbonite issued a press release announcing the resignation of its CEO and reduced its financial guidance for fiscal 2019, revealing that Carbonite’s Server Backup VM Edition was of poor quality and had earned poor reviews from customers.

On this news, the stock price of Carbonite fell more than 24% to close at $18.01, and has yet to recover.

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