Class Action Lawsuit Vs. Compellent by Izard Nobel
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This is a Press Release edited by StorageNewsletter.com on April 15, 2010 at 2:48 pmThe law firm of Izard Nobel LLP, which has experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the District of Minnesota on behalf of purchasers of the common stock of Compellent Technologies, Inc. between October 28, 2009 and April 7, 2010, inclusive.
The Complaint charges that Compellent and certain of its officers and executives violated federal securities laws.
Specifically, defendants failed
to disclose the following material adverse facts:
- that Compellent was experiencing increasing competition which was forcing it to dramatically lower prices in order to continue to generate sales in line with internal expectations;
- that as a result of increased competition, the Company was being forced to raise expenditures associated with acquiring new customers far in excess of internal expectations;
- that Compellent was experiencing significant issues with its sales force which were further complicating and exacerbating the negative impact of slowing sales; and
- that, based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company, its prospects and growth.
On April 7, 2010, Compellent announced its preliminary financial results for the first quarter of 2010, the period ended March 31, 2010. Upon the disappointing announcement, shares of the Company’s stock fell $4.54 per share, or 26%, to close at $13.02 per share.