Class Action Lawsuits Filed Against Carbonite and NetApp

Bragar Eagel & Squire, P.C. reminds investors that class action lawsuits have been commenced on behalf of stockholders of Carbonite, Inc. and NetApp, Inc.

Stockholders have until the deadlines below to petition the court to serve as lead plaintiff.

The complaint, filed on August 1, 2019, alleges that throughout the class period defendants issued materially false and misleading statements regarding the technological quality of the Server Backup VM Edition and its potential to add meaningfully to Carbonite’s financial performance for FY19.

Specifically, defendants failed to disclose that:
(i) Carbonite’s Server Backup VM Edition was of poor quality and technologically flawed;
(ii) Carbonite was receiving poor reviews and complaints from customers about the Server Backup VM Edition;
(iii) the poor quality and technological flaws of the Server Backup VM Edition was acting as a disruptive factor throughout the Carbonite sales force and keeping that sales organization from closing opportunistically on several larger deals during fiscal 2019; and
(iv) as a result of the foregoing, Carbonite lacked any reasonable basis for issuing its positive projections and financial forecasts.

Finally, on July 25, 2019, Carbonite announced that it was withdrawing its Server Backup VM Edition product from the marketplace and consequently dramatically lowered its financial projections for FY19 and FY20.

That same day, the strongest proponent and supporter of Server Backup VM Edition, Defendant Ali, announced he was leaving Carbonite.

On this news, Carbonite stock declined more than 24%, from $23.90 per share when the market closed on July 25, 2019, to $18.01 per share when the market closed on July 26, 2019, on extremely heavy trading volume.

On August 1, 2019, the company reported preliminary 1FQ19 adjusted earnings per share of $0.55 to $0.60, below the average estimate of $0.83, and net revenue of $1.22 billion to $1.23 billion, below the average estimate of $1.39 billion. Moreover, the company lowered its 2020 outlook and expected net revenue to decline between 5% and 10% year-over-year.

On this news, the company’s share price fell $11.67 per share, to close at $46.04 per share on August 2, 2019.

The complaint, filed on August 14, 2019, alleges that throughout the class period defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects.

Specifically, defendants made
false and/or misleading statements and/or failed to disclose:
(1) that the company was unable to close large deals within the quarter and that the deals were pushed out to subsequent quarters or downsized;
(2) that, as a result, the company’s revenue would be materially impacted;
(3) that, as a result, the company would lower its FY20 guidance; and
(4) that, as a result of the foregoing, defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Read also:
Class Action Lawsuit Vs. Carbonite by Bronstein, Gewirtz & Grossman …
Defendants made false and/or misleading statements.
August 21, 2019 | Press Release
… As Well as by Zhang Investor Law
To recover damages for Carbonite investors under federal securities laws
August, 21, 2019 | Press Release
Also Robbins Geller Rudman & Dowd Commenced Class Action Suit Against Carbonite
Failing to disclose adverse information regarding technological quality of Server Backup VM Edition
August 8, 2019 | Press Release
Once More Lawyer Filing of Class Action Lawsuit Vs. Carbonite …
The Schall Law Firm
August 7, 2019 | Press Release
… As Well as Former Louisiana Attorney General: Kahn Swick & Foti
Carbonite failing to disclose material information during class period, violating federal securities laws
August 7, 2019 | Press Release
Attorney Ademi & O’Reilly Investigates Possible Securities Fraud of Carbonite
As Server VM Edition, launched in October 2018, was technically substandard, of poor quality, and being rejected by customers.
July 31, 2019 | Press Release