Attention Infoblox Inc. Investors: Infoblox Misled Investors According to a Recently Filed Class Action
Robbins Arroyo LLP announces that an investor of Infoblox Inc. (NYSE: BLOX) 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 September 6, 2013 and February 10, 2014 (the “Class Period”). Infoblox claims to provide technology that offers an easy way to maintain a platform for critical network services and also provides optimized security software.
Infoblox Is Accused of Misrepresenting Its Financial Status
According to the complaint, shares of Infoblox fell $15.95 per share or 48%, to close at $17.19 per share on February 11, 2014, following Infoblox’s announcement of its preliminary second quarter 2014 results in which the company negatively revised its guidance for both the second quarter 2014 as well as for its fiscal year ending July 31, 2014. Specifically, Infoblox projected its second quarter 2014 predicted revenue to be between $60-61 million rather than $65-66 million, as had previously been projected. Likewise, full year external revenue projections were modified from between $270-276 million to a lower range of $250 -254 million.
The complaint further alleges that Infoblox made false and misleading statements regarding its financial strength while knowing that: (i) the company’s federal business prospects were weak; (ii) Infoblox had been implementing enormous discounting in order to maintain market share; and (iii) the company was failing to close on large deals that had previously driven its revenue growth.
Infoblox Investors Are Encouraged to Contact Shareholder Rights Law Firm Robbins Arroyo LLP
If you invested in Infoblox and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.