Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Nutanix, Inc.
SAN DIEGO--(BUSINESS WIRE)--May 6, 2019--Robbins Geller Rudman & Dowd LLP ( http://www.rgrdlaw.com/cases/nutanix-inc/ ) today announced that a class action has been commenced on behalf of purchasers of Nutanix, Inc. (NASDAQ:NTNX) common stock during the period between March 2, 2018 and February 28, 2019 (the “Class Period”). This action was filed in the Northern District of California and is captioned Mauter v. Nutanix, Inc., et al., No. 19-cv-02442.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Nutanix common stock during the Class Period to seek appointment as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from March 29, 2019. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. You can view a copy of the complaint as filed at http://www.rgrdlaw.com/cases/nutanix-inc/.
The complaint charges Nutanix and certain of its officers with violations of the Securities Exchange Act of 1934. Nutanix provides a leading enterprise cloud platform that powers business applications and end-user services by providing software solutions that digitize traditional silos of enterprise computing.
The complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding Nutanix’s business and prospects. Specifically, defendants failed to disclose that Nutanix had reallocated lead generation spending to other priorities, which represented a significant strategy shift from how the Company had historically conducted its sales efforts, causing a large disruption in the Company’s sales execution, negatively impacting Nutanix’s sales pipeline and slowing the Company’s sales growth; that Nutanix had fallen behind in its sales hiring goals, which was further impairing the Company’s efforts to grow its sales pipeline development; and that the improvement in the Company’s gross margins was not the result of the changes being made to the Company’s business model, but rather was the result of the Company’s decision to reallocate lead generation spending. As a result of defendants’ false statements and/or omissions, the price of Nutanix common stock was artificially inflated during the Class Period to more than $63 per share, which enabled certain of Nutanix’s senior officers to sell their Nutanix stock at artificially inflated prices.
Then, on the February 28, 2019, defendants announced the Company’s financial results for the second quarter of fiscal 2019, revealing that imbalances in lead generation spending were impacting the Company’s sales pipeline and that the Company’s failure to keep pace with sales hiring goals had had a negative effect on sales pipeline development. As a result of these disclosures, the price of Nutanix common stock dropped $16.39 per share to close at $33.70 per share on March 1, 2019, a decline of over 32%.
Plaintiff seeks to recover damages on behalf of all purchasers of Nutanix common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller is a national law firm representing investors in securities litigation. With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For five consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in both the amount recovered for shareholders and the total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also advocates for corporate governance reforms, helping to improve the financial markets for investors worldwide. Please visit http://www.rgrdlaw.com for more information.
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CONTACT: Robbins Geller Rudman & Dowd LLP
800/449-4900 or 619/231-1058
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL
SOURCE: Robbins Geller Rudman & Dowd LLP
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PUB: 05/06/2019 03:54 PM/DISC: 05/06/2019 03:54 PM