Dyer & Berens Files Class Action Lawsuit Vs. Compellent

Dyer & Berens LLP has filed a class action lawsuit 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, seeking to pursue remedies under the Securities Exchange Act of 1934.

The plaintiff alleges that defendants failed to disclose material adverse facts about the company’s true financial condition, business and prospects. Specifically, defendants failed to disclose:

• that the company was experiencing increasing competition which was forcing it to dramatically lower prices;
• that as a result of increased competition, the company was being forced to raise expenditures associated with acquiring new customers; (
• that the company was experiencing significant issues with its sales force which were further 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, the company announced its preliminary financial results for 1Q10. Upon this disappointing announcement, the company’s stock fell $4.54 per share, on unusually heavy trading volume.