SAN DIEGO, Apr. 14, 2015 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit was filed on behalf of certain purchasers of shares of Castlight Health Inc (NYSE:CSLT) over alleged Violations of Securities Laws by Castlight Health in connection with certain allegedly false and misleading statements.
Investors who purchased shares of Castlight Health Inc (NYSE:CSLT) in 2014 have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff claims that the registration statement in connection with Castlight Health Inc’s initial public offering (“IPO”) in March 2014 was allegedly negligently prepared and, as a result, contained untrue statement of material facts or omitted to state other facts necessary to make the statements made not misleading and was not prepared in accordance with the rules and regulations governing its preparation.
The plaintiff says that the Registration Statement stated that "[a]s of December 31, 2013, we had 106 signed customers, including 48 customers that had implemented our offering, which we refer to as launched customers." Concerning "backlog," the Registration Statement stated: "Our total backlog, which we define as including cancellable and non -cancellable portions of our customer agreements for which we have not yet billed, was $ 108. 7 million as of December 31, 2013, compared to $ 44.0 million as of December 31, 2012." The plaintiff claims that these statements were materially false and misleading because they failed to disclose that the Company's backlog was growing because of implementation delays which reflected significant obstacles to scalability.
On February 18, 2015, Castlight Health Inc announced its fourth quarter and full year 2014 results. Additionally, Castlight Health Inc issued its guidance for its first quarter 2015 and full year 2015. Shares of Castlight Health Inc (NYSE:CSLT) declined to as low as $6.52 per share on February 19, 2015.
The lawsuit seeks to recover damages for certain Castlight Health CSLT investors.
Those who purchased Castlight Health Inc (NYSE:CSLT) 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.