Wites Law Firm announces their investigation of Violin Memory, Inc. (“Violin Memory” or the “Company”) (NYSE:VMEM). On or about September 27, 2013, Violin Memory sold 18 million shares of common stock at $9 per share in its initial public offering (“IPO”). The underwriters of Violin Memory’s IPO were J.P. Morgan Securities, LLC, Deutsche Bank Securities Inc., Merrill Lynch, Pierce, Fenner t Smith Incorporated, Barclays Capital Inc., Baird t Co., and Pacific Crest Securities LLC (the “Underwriters”).
On November 21, 2013, the company reported its financial results for the third fiscal quarter of 2014. The company reported a higher-than-expected net loss of $0.85 cents a share, and sales of $28.3 million, which were below analysts’ expectations. Violin Memory also provided revenue guidance between $30 million and $32 million for its 2014 fiscal fourth quarter, well-below analyst estimates in the range of $44 million.
Following this news, on November 22, 2013, Violin Memory’s stock price dropped $2.89 per share, more than 48%, to close a $3.11 per share on heavy trading volume. The Wites Law Firm seeks to uncover additional information about this substantial loss of shareholder value, and potential investor claims against Violin Memory.
Actions have been filed against the Company, certain executives and/or directors and the Underwriters in the United States District Court for the Northern District of California on behalf of all persons other than defendants who purchased or otherwise acquired the common stock of Violin Memory pursuant and/or traceable to the Company’s false and/or misleading Registration and Prospectus issued in connection with the Company’s IPO and who were damaged thereby. The complaints allege that the Registration Statement failed to disclose that the Company was being negatively impacted by known trends. Among other things, it is alleged that defendants failed to disclose material information, including that (1) Violin Memory’s statements about the Company’s projected revenues for its flash memory sales were based on materially flawed projections, (2) the Company could not in fact reach the revenue goals it had touted to investors, and (3) 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.
If you are an investor who purchased Violin Memory stock you may have a legal claim against the Company and could serve as the lead plaintiff in a class action lawsuit. The deadline for lead plaintiff is January 27, 2014. If you are interested in being the lead plaintiff, or would like to speak with an attorney about your legal rights, contact the attorneys at Wites Law Firm by email at firstname.lastname@example.org or toll-free at 1 (866) 277-8631.