… And Robbins Arroyo

Shareholder rights law firm Robbins Arroyo LLP announces that an investor of Violin Memory, Inc. has filed a federal securities fraud class action complaint in the U.S. District Court for the Northern District of California.

The complaint alleges that certain officers, directors, and underwriters of the company violated the Securities Act of 1933 in connection with the company’s September 26, 2013, initial public offering.

Violin Memory develops and supplies memory-based storage systems to bring storage performance in line with high-speed applications, servers, and networks worldwide.

Violin Memory Accused of Filing False
and Misleading Registration Statement and Prospectus
Shares of Violin Memory fell $2.89 per share, or 48%, to close at $3.11 on November 22, 2013, when the company revealed to investors the extent to which the company had been negatively affected by the a slowdown in spending by the U.S. Government.

According to the complaint, prior to the company’s IPO, various federal agencies had begun to reprioritize their budgets in light of the possibility that the government would be shutdown and Violin Memory failed to disclose in its Registration Statement the significant adverse impact of the reorganization to the company’s sales and revenues.

As a result, the company’s registration statement contained false and/or misleading statements in violation of the rules and regulations governing their preparation.