Robbins Arroyo LLP: Hortonworks, Inc. (HDP) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Hortonworks, Inc. (NASDAQGS: HDP) in the U.S. District Court for the Northern District of California. The plaintiff brings the complaint on behalf of all purchasers of Hortonworks securities between November 4, 2015 and January 15, 2016, for the alleged violations of the Securities Act of 1934 by Hortonworks’ officers and directors. Hortonworks develops, distributes, and supports Hadoop open source project in the United States and internationally.
Hortonworks Accused of Lying About Its Financial State
According to the complaint, on November 4, 2015, Hortonworks issued a press release and filed a Form 8-K with the U.S. Securities and Exchange Commission (“SEC”) announcing the company’s financial results for the third quarter 2015. The company reported that as of September 30, 2015, it had cash and investments of $116.3 million. On November 12, 2015, the company filed a Form 10-Q with the SEC, stating that it believed its existing cash and cash equivalents balance, along with cash generated from sales of its support subscriptions and professional services to customers, would be sufficient to meet its working capital and capital expenditure requirements for the next 12 months. However, these statements were allegedly misleading because Hortonworks officials failed to disclose that it actually lacked sufficient funds for 12 months of working capital and capital expenditure needs, and that as a result, the company was considering a significant offering to fund its operations.
On January 15, 2016, Hortonworks announced that it had retained Goldman Sachs to raise $100 million in a secondary offering. In response, analysts suspected that the announcement and timing of the offering suggested evidence of serious difficulty for the company. On this news, Hortonworks stock fell $6.13 per share, or nearly 37%, to close at $10.44 per share on January 19, 2016.
Hortonworks 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.