Investigation of Box, Inc.
Box, Inc. (BOX) Accused of Misleading Investors
According to the complaint, for alleged violations of the Securities Exchange Act of 1934 between November 28, 2018 and June 3, 2019, in November 2018, Box announced its third quarter 2018 financial results and touted its more than 40% growth in deals worth over $100,000. However, Box failed to disclose that it would be unable to close those large deals within the quarter. In February 2019, Box reported fourth quarter revenue that fell below investors’ expectations, citing longer sales cycles for seven-figure deals. On this news, Box’s share price fell $4.64, or nearly 19%, to close at $20.24 on February 28, 2019. In June 2019, Box lowered its fiscal 2020 revenue outlook to a range of $688 million to $692 million, from previous guidance of $700 million to $704 million, again citing longer sales cycles for its larger deals. On this news, Box’s share price fell as much as $1.30, or more than 7%, to close at $17.18 per share on June 4, 2019.
Box, Inc. (BOX) Shareholders Have Legal Options
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