Class Action Lawsuit Filed Vs. SanDisk by Faruqi & Faruqi

Faruqi & Faruqi, LLP, a national securities law firm, notifies investors in SanDisk Corporation of the May 29, 2015 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against SanDisk and certain executives.

A complaint has been filed in the Northern District of California on behalf of all persons who purchased SanDisk common stock from October 16, 2014 through March 25, 2015.

The complaint alleges that the company and its executives violated federal securities laws with respect to its disclosures concerning its business, operations, and prospects.

Specifically, the action alleges that during the class period, the company concealed that it was experiencing certain production qualification delays on some of its key products. Also, the company allegedly concealed that it was experiencing lower than expected sales of enterprise products and was vulnerable to lower pricing in some areas of the business.

On March 26, 2015, the company disclosed that due to the aforementioned issues it had to reduce its expected revenue for the fiscal first quarter from $1.45 billion down to $1.3 billion.

Following this news, the price of the company’s stock dropped over 18% closing at $66.20 per share on March 26, 2015.