RADNOR, Pa.--(BUSINESS WIRE)--The law firm of Kessler Topaz Meltzer & Check, LLP reminds NetApp, Inc. (NASDAQ: NTAP) (“NetApp”) investors that a securities fraud class action lawsuit has been filed on behalf of those who purchased or otherwise acquired NetApp securities between May 22, 2019 and August 1, 2019, inclusive (the “Class Period”).
REMINDER: Investors who purchased NetApp securities during the Class Period may, no later than October 15, 2019, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation please click here.
According to the complaint, NetApp provides a range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation.
The Class Period commences on May 22, 2019, when NetApp announced fourth quarter and full year 2019 financial results.
According to the complaint, on August 1, 2019, after the market closed, NetApp reported preliminary first quarter 2020 net revenue between $1.22 and $1.23 billion, below previous guidance between $1.315 to $1.465 billion, and earnings per share between $0.30 and $0.35, below previous guidance between $0.56 and $0.64. Additionally, NetApp lowered its 2020 outlook and expected net revenue to decline between 5% and 10% year-over-year.
Following this news, NetApp’s share price fell as much as $11.67, or over 20%, to close at $46.04 per share on August 2, 2019.
The complaint alleges that, throughout the Class Period, the defendants failed to disclose to investors that: (1) NetApp was unable to close large deals within the quarter and that the deals were pushed out to subsequent quarters or downsized; (2) as a result, NetApp’s revenue would be materially impacted; (3) as a result, NetApp would lower its fiscal 2020 guidance; and (4) as a result of the foregoing, the defendants’ positive statements about NetApp’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Investors who wish to discuss this securities fraud class action lawsuit and their legal options are encouraged to contact Kessler Topaz Meltzer & Check, LLP (James Maro, Jr., Esq. or Adrienne Bell, Esq.) at (844) 887-9500 (toll free) or at info@ktmc.com.
NetApp investors may, no later than October 15, 2019, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.
