San Diego, CA -- (ReleaseWire) -- 04/22/2014 -- An investigation for current investors in shares of Violin Memory Inc (NYSE:VMEM) concerning whether certain Violin Memory directors and officers breached their fiduciary duties and caused damages to the company and its stockholders was announced.
Investors who purchased shares of Violin Memory Inc (NYSE:VMEM) in and / or pre the Company’s September 26, 2013, initial public offering (“IPO”) and / or shortly after September 26, 2013, have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
The investigation by a law firm for current long term investors in Violin Memory Inc (NYSE:VMEM) stocks follows a lawsuit filed recently against Violin Memory Inc over alleged securities laws violations. The investigation on behalf of current long term investors in NYSE:VMEM stocks concerns whether certain Violin Memory officers and directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for the Northern District of California the plaintiff alleges that Violin Memory Inc, certain of its executive officers and directors, and underwriters of the IPO violated federal securities laws. The plaintiff alleges that the prospectus and registration statement issued in connection with Violin Memory Inc’s IPO were allegedly false and misleading because they failed to disclose that the Company was being negatively impacted by known trends affecting its sales and revenues. More specifically, the plaintiff claims that Violin Memory Inc allegedly failed to disclose that, prior to the IPO, the Company’s sales and revenues were being negatively impacted by the reprioritization of federal agencies’ budgets due to the uncertainty surrounding the negotiations over the federal budget and the possibility of a shutdown of the federal government.
On November 21, 2013, Violin Memory Inc announced its financial results for the third fiscal quarter that ended on October 31, 2013. Among other things, Violin Memory Inc issued its guidance for its fiscal 2014 fourth quarter.
The plaintiff alleges it was then when Violin Memory Inc disclosed that it had been negatively impacted by the slowdown in spending by the federal government in its first quarter as a public company.
Shares of Violin Memory Inc declined from $6.20 per share during November 21, 2013, to as low as $2.56 per share on December 12, 2013. On April 17, 2014, NYSE:VMEM shares closed at $3.81 per share.
Those who purchased shares of Violin Memory Inc (NYSE:VMEM) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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