SAN DIEGO, Dec. 2, 2014 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit was filed by a current investor in shares of Infoblox Inc (BLOX) over alleged breaches of fiduciary duties by certain directors of Infoblox.
If you purchased shares of Infoblox Inc (NYSE:BLOX) prior to September 2013 and continue to hold any of those shares, you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff claims that certain top officials and board members of Infoblox Inc sold almost $40 million of their shares at prices inflated through allegedly false and misleading statements. The plaintiff claims that Infoblox artificially increased its revenue temporarily by using extreme discounting, while denying it was doing so.
Infoblox Inc currently faces a lawsuit over alleged securities laws violations exposing the company to potentially millions in damages. According to that complaint between September 6, 2013 and February 10, 2014 defendants allegedly falsely lauded Infoblox Inc as a financially successful company, repeatedly emphasizing the company's strong revenues and proclaiming that the company was entering "fiscal 2014 with significant momentum and expect[ed] [2014] to be another year of strong execution," when, in fact, Infoblox Inc had secretly implemented enormous discounting in order to maintain market share, and was allegedly failing to close on big-ticket deals that had previously driven its revenue growth.
In February 2014, Infoblox Inc announced its preliminary fiscal second quarter 2014 results. Shares of Infoblox Inc (NYSE:BLOX) declined from $38.56 per share in January 2014 to $17.19 per share on February 11, 2014.
Then on May 29, 2014, Infoblox Inc reported its third quarter Fiscal 2014 results. Among other things Infoblox revealed a net loss of $7.4 million for the third quarter of fiscal 2014 and lowered its year-over-year revenue forecast. That same day, Infoblox Inc announced that Robert D. Thomas was stepping down as the Company's president and chief executive officer. Shares of Infoblox Inc (NYSE:BLOX) declined to as low as $12.01 per share during May 30, 2014, which is less than 1/4 of its highest trading price of $48.97 per share in October 2013.
Those who are current long-term stockholders of Infoblox Inc (NYSE:BLOX) 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.