Former SEC Attorney Willie Briscoe and Powers Taylor Investigate Fusion-io

Former United States SEC attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, and the securities litigation firm of Powers Taylor LLP announce that a federal class action lawsuit has been filed against Fusion-Io, Inc.

The firms are investigating additional legal claims against the officers and board of directors of Fusion during the period of August 10, 2012 and October 23, 2013.

In a recently filed federal class action complaint, Fusioio and certain of its officers and directors were charged with violating certain provisions of the Securities Exchange Act of 1934.

Specifically, the complaint alleges that among other things, defendants misrepresented and/or failed to disclose that:

• Fusion-io was a market leader in large-scale flash memory applications;
• Fusion-io was not facing any competitive pressure or risk from the commoditization of flash memory products.

Defendants also allegedly issued unrealistically positive revenue guidance and misrepresented that the company was able to anticipate the demand from its strategic customers based on its years of experience as their flash memory supplier.

Further, according to the complaint, on October 23, 2013, the company revoked its prior revenue guidance, announced its expected gross margin in 2014 would fall, and that its CFO and Chief Sales Officer were leaving the company.

Following these disclosures, the company’s stock dropped dramatically.