And Five More Class Actions Vs. Violin Memory, by Newman Ferrara …

Newman Ferrara LLP announces that a class action lawsuit has been filed in the Unites States District Court for the Northern District of California against Violin Memory, Inc. and certain officers and directors, alleging violations of federal securities laws.

Investors who purchased Violin common stock pursuant and/or traceable to the company’s September 27, 2013 IPO may apply with the Court to be appointed Lead Plaintiff no later than January 27, 2014. The lead plaintiff will direct the litigation on behalf of the other class members.

According to the complaint, on September 27, 2013, Violin Memory Inc. held its IPO at $9.00 per share.

Investment banks, including J.P. Morgan, Deutsche Bank Securities, Bank of America, Merrill Lynch, Barclays, Baird, and Pacific Crest Securities acted as underwriters for the IPO.

Less than two months later, after the market closed on November 21, 2013, the company reported earnings that were lower than expectations, that it had burned through half of its IPO cash, and that its expenses were increasing faster than revenue.

In connection with its earnings miss, J.P. Morgan, the lead underwriter in the IPO, lowered its price target.

Violin’s stock plummeted to close at $3.11 per share on November 22, 2013.