SAN DIEGO, Sept. 13, 2016 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit was filed for certain investors in Pure Storage Inc (NYSE:PSTG) over alleged Securities Laws violations by Pure Storage Inc in connection to the company’s October 7, 2015 initial public offering.
Investors who purchased shares of Pure Storage Inc (NYSE:PSTG) have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges on behalf of the shareholders, who purchased Pure Storage (NYSE:PSTG) common shares pursuant or traceable to its initial public offering ("IPO") on October 7, 2015 that the defendants violated the Securities Act of 1933.
The plaintiff claims that the Registration Statement in connection with the October 7, 2015 IPO was allegedly negligently prepared and contained untrue statements of material facts or omitted other facts necessary to make the statements not misleading.
More specifically, the plaintiff alleges that Pure Storage Inc failed to disclose and misrepresented that at the time of the IPO its sales personnel had aggressively pulled sales forward into the quarters prior to the IPO, resulting in reduced sales in the quarters ending after its IPO, that at the time of the IPO general trends in the IT market, as well as Pure Storage's own historical sales trends, demonstrated that its first quarter 2017 sales growth for the quarter ending April 30, 2016, would be significantly lower than prior quarters, and that at the time of the IPO its concomitant increases in sales and marketing and general and administrative expenses were not one-time expenses attributable to increasing the size of its sales force and sales footprint, but would continue in perpetuity.
Shares of Pure Storage Inc (NYSE:PSTG) declined from as high as $20.60 per share on October 15, 2015 to as low as $9.62 per share on June 20, 2016.
Those who purchased Pure Storage Inc (NYSE:PSTG) shares have certain options and should contact the Shareholders Foundation, Inc. by e-mail 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.