Robbins Arroyo LLP: FireEye, Inc. (FEYE) Misled Shareholders According to a Recently Filed Class Action
Shareholder rights law firm Robbins Arroyo LLP announces that an investor of FireEye, Inc. (NASDAQ: FEYE) has filed a federal securities fraud class action complaint in the U.S. District Court for the Northern District of California. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between January 2, 2014 and November 4, 2014. FireEye provides products and services for detecting, preventing, and resolving advanced cybersecurity threats.
FireEye Is Accused of Misleading Investors
According to the complaint, shares of FireEye fell 16.03% to close at $28.79 on November 5, 2014, following statements by company officials that FireEye was experiencing “near-term pressure on revenue” resulting from its transition to a new subscription-based cloud service. The event marked the end of a dramatic decline in which the company’s shares fell 73.1% from a class period high of $95.63 on March 5, 2014. The complaint alleges that FireEye’s dramatic stock decline began on May 6, 2014, following the announcement that the company’s 2014 first quarter product revenue fell well below analyst’s expectations while indicating that FireEye was migrating away from a business model focused on product sales and toward a model based more on services and subscriptions. On this news, FireEye shares fell an additional 23%, to close at $28.65 per share, while company officials continued to tout promising future results based on organic and acquired growth. On August 6, 2014, FireEye’s shares fell 11.4%, to a close at $30.78, on the release of the company’s 2014 fiscal second quarter results that showed a continued transition to a service-centered business model.
The complaint further alleges that FireEye made false and/or misleading statements and failed to disclose material adverse facts about the company’s business, operations, and prospects.
FireEye Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.