Glancy Prongay & Murray LLP Announces the Filing of a Securities Class Action on Behalf of Micro Focus International plc Investors (MFGP)
Jul. 06, 2018
LOS ANGELES--(BUSINESS WIRE)--Jul 6, 2018--National securities litigation law firm Glancy Prongay & Murray LLP (“GPM”) announces that a class action lawsuit has been filed on behalf of investors that purchased Micro Focus International plc (“Micro Focus” or the “Company”) (NYSE: MFGP ) American Depository Shares (“ADSs”) in connection with the merger of Micro Focus and Hewlett Packard Enterprise Company (“HPE”), which closed on September 1, 2017 (“the Merger”), or between September 1, 2017 and May 23, 2018, inclusive (the “Class Period”). Micro Focus investors have until July 23, 2018 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
Investors that suffered losses on their Micro Focus investments are encouraged to contact Lesley Portnoy of GPM to discuss their legal rights in this class action at 310-201-9150 or by email to firstname.lastname@example.org.
On March 19, 2018, Micro Focus announced the resignation of its Chief Executive Officer and disclosed that the Company was lowering its constant currency revenue guidance for the twelve months ending October 31, 2018 to a range of minus 6% to minus 9% compared to the 12 months ending October 31, 2017. On this news, Micro Focus’ share price fell nearly 50% on March 19, 2018, thereby injuring investors.
The Complaint filed in this class action alleges that the Company made false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, the complaint alleges that the Company failed to disclose that HPE was experiencing significant and global customer account disruptions due to its de-merger with Hewlett Packard. HPE and Micro Focus were also suffering from employee attrition, which negatively impacted Micro Focus’s revenue trend and operational abilities. Micro Focus’s revenue trends were worsening and on pace to miss expectations in the market for its interim results reported for the six months ending on October 31, 2017. The Company was also suffering from sales execution problems in North America. HPE did not have key assets like a loyal customer base, key personnel, or operational capabilities to justify its purchase price. Micro Focus failed to put in place the necessary operations, staff, and plan to effectively integrate with HPE in order to increase the chances of enjoying a positive synergy between the two organizations. According to the complaint, the total enterprise value of the merger was allegedly inflated by more $3.4 billion. As a result, Micro Focus’ public statements were materially false and misleading at all relevant times.
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If you purchased shares of Micro Focus during the Class Period you may move the Court no later than July 23, 2018 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to email@example.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com:https://www.businesswire.com/news/home/20180706005448/en/
CONTACT: Glancy Prongay and Murray LLP, Los Angeles
Lesley Portnoy, 310-201-9150 or 888-773-9224
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL
SOURCE: Glancy Prongay and Murray LLP
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PUB: 07/06/2018 05:41 PM/DISC: 07/06/2018 05:40 PM