SAN DIEGO, Nov. 12, 2014 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit was filed by an investor in shares of Model N Inc (MODN) over alleged securities laws violations by Model N Inc.
If you purchased shares of Model N Inc (MODN), you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges that the Registration Statement in connection with the company's March 2013 initial public offering ("IPO") purported to warn investors about the extended sales cycle for the Company's products without disclosing that at the time of the IPO the Company was then experiencing sales execution issues that threatened to further impede and delay the sales process, that the Registration Statement purported to warn investors about the importance of the Company's direct sales force, but failed to disclose the sales execution issues then facing the Company, that the company issued certain statements that were inaccurate statements of material fact because they failed to disclose that the Company was then experiencing a disruption in its sales force which was negatively impacting the Company's ability to close sales and causing significant sales execution issues.
The plaintiff says that Model N Inc (NYSE:MODN) was required to disclose at the time of the IPO that it was then experiencing sales execution issues which were highly likely to impact continuing operations, but the Registration Statement contained no such disclosures and that given the Company's extended sales cycle for its products, the Company's sales execution issues were highly likely to impact the Company's continuing operations, as the Company lost sales opportunities or sales were delayed, and, therefore, these issues were required to be disclosed in the Registration Statement but were not.
Shares of Model N Inc (NYSE:MODN) declined from as high as $24.41 per share in July 2013 to as low as $7.74 per share in November 2013.
Those who purchased shares of Model N Inc (NYSE:MODN) have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.