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Investigations  /  08.19.2019

Shareholder Investigation of NetApp, Inc.

NetApp, Inc. (NTAP) Accused of Misleading Shareholders

According to the complaint, in May 2019, NetApp announced its full year 2019 financial results, touting increases in net revenue and income and an increase of $4.09 in earnings per share. In June 2019, NetApp reaffirmed these results in its Form 10-K, despite also acknowledging risks that could affect its business, including that most of its revenues came from large, recurring purchases from clients and that any cancellations or delays in these purchases could negatively impact NetApp’s revenues. However, what NetApp failed to disclose was that it was already experiencing material negative impacts on its revenue due to the company’s inability to close large deals within the quarter. Then, on August 1, 2019, NetApp revealed the reality of its financial situation when it announced lowered than expected first quarter 2019 adjusted earnings and net revenue and lowered its first quarter 2020 net revenue from a range of $1.315 to $1.465 billion to a range of $1.22 to $1.23 billion and announced its 2020 net revenue was expected to decline between 5% to 10% year-over-year. On this news, NetApp’s share price fell $11.67, or over 20%, to close at $46.04.

NetApp, Inc. (NTAP) Shareholders Have Legal Options

Concerned shareholders who would like more information about their rights and potential remedies can send us a message via the Shareholder Information below.

Shareholder Information

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Please Note: Neither the submission to nor the receipt of information by Robbins Arroyo LLP or one of its attorneys through this website constitutes an agreement by our firm to represent the individual and does not create an attorney-client relationship. Please do not send confidential or sensitive information through this website. This information should be communicated through a direct contact with an individual at the firm.

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