Lawsuit for Investors in Nimble Storage Vs. Directors

The Shareholders Foundation, Inc. announces that a lawsuit was filed by an investor in Nimble Storage, Inc. shares against certain directors of Nimble Storage over alleged wrongdoing.

The plaintiff alleges that Nimble Storage and certain of its executives issued news releases and analyst calls exaggerating Nimble Storage’s success with its decision to shift its sales from small and medium-sized IT organizations to large enterprises and when Nimble Storage announced quarterly results that fell short of expectations shares of Nimble Storage declined.

More specifically, the plaintiff says that in October 2014, Nimble Storage introduced new products that were designed to compete for the storage business of larger enterprises but by May 2015, well-entrenched, large competitors had slashed prices to maintain their market share, resulting in lower than expected sales for Nimble Storage.

In December 2015 a lawsuit was filed against Nimble Storage over alleged securities laws violations. The plaintiff in that lawsuit alleges that Nimble Storage issued certain allegedly false and misleading statements and/or failed to disclose adverse material information regarding the company’s business and prospects, including that Nimble Storage was being negatively impacted by intense competition from well-entrenched, large competitors who were slashing prices in order to maintain market share, that Nimble Storage had made a conscious decision to focus its sales and marketing efforts towards the large enterprises market and to reduce sales efforts in the U.S. commercial market, and that due to this change in sales strategy and the intense price competition, Nimble Storage was losing sales in both sales channels.

The plaintiff claims that as a result of these false statements and/or omissions, Nimble Storage stock traded at artificially inflated prices and enabled certain company insiders to collectively sell more than 1.12 million shares of their personally held Nimble Storage common stock at artificially inflated prices for gross proceeds in excess of $31.4 million.