Three More Class Action Vs. Violin Memory, From Willie Briscoe and Powers Taylor …

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 Violin Memory, Inc.www.vmem.com.

The firms are investigating additional legal claims against the officers and board of directors of Violin Memory pursuant and/or traceable to the registration statement and prospectus issued in connection with Violin Memory’s September 27, 2013 IPO.

In a recently filed federal class action complaint, Violin Memory 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 at the time of the IPO that:

• the company’s sales to the U.S. government through third-party resellers had already been negatively impacted by the threatened U.S. government shutdown; and
• the company was accumulating higher research and marketing costs for its new products than it had budgeted for in the third quarter of 2013, which meant the company was spending more than it could handle and more than the Registration Statement indicated.

According to the complaint, instead of disclosing this information, as the IPO required, Violin Memory issued false and misleading statements. Then when the true facts came to light, shares of Violin Memory dropped dramatically.