NetApp, Inc. (Nasdaq: NTAP)
A class action has been filed in the United States District Court for the Northern District of California on behalf of purchasers of NetApp, Inc. (Nasdaq: NTAP) securities during the period between May 22, 2019 to August 1, 2019, (the “Class Period”).
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, defendants failed to disclose that the Company had been unable to close large deals within the quarter and that the deals had been pushed out to subsequent quarters or downsized, which would have a material impact on the Company’s revenue and cause the Company to lower its fiscal 2020 guidance. As a result of this information being withheld from the market, NetApp securities traded at artificially inflated prices during the Class Period of more than $65 per share, and NetApp insiders were able to sell their NetApp stock at these artificially inflated prices for insider proceeds of more than $13 million.
Then on August 1, 2019, after the market closed, the Company reported preliminary first quarter 2019 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. Additionally, the Company lowered its 2020 outlook, forecasting a net revenue decline of between 5% and 10% year-over-year. On this news, the Company’s share price fell $11.67 per share, or over 20%, to close at $46.04 per share on August 2, 2019.
If you are a current shareholder and/or purchased stock during the period between May 22, 2019 to August 1, 2019, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.