The Law Office of Robbins Arroyo LLP Announces that It Has Filed a Class Action Lawsuit Against Pure Storage, Inc. (PSTG)
Robbins Arroyo LLP announces that it filed a class action lawsuit on September 1, 2016, in the Superior Court of the State of California County of San Mateo (the “Court”) on behalf of the shareholders who purchased shares of Pure Storage (NYSE: PSTG) during its initial public offering (“IPO”) on October 7, 2015. The complaint seeks remedies under the Securities Act of 1933.
Pure Storage is Accused of Disseminating a False and Misleading Registration Statement
On May 15, 2015, Pure Storage filed with the U.S. Securities and Exchange Commission (“SEC”) its Registration statement on Form S-1, which after some amendments in response to comments received from the SEC, was used for the IPO. On October 7, 2015, Pure Storage filed with the SEC the final prospectus for the IPO, and sold 28.75 million shares of Pure Storage common stock to the investing public at $17.00 per share, raising a total of $488.75 million.
According to the complaint, the Registration Statement was negligently prepared and contained untrue statements of material facts or omitted other facts necessary to make the statements made not misleading. Specifically, Pure Storage failed to disclose and misrepresented that at the time of the IPO: (i) its sales personnel had aggressively pulled sales forward into the quarters prior to the IPO, resulting in reduced sales in the quarters ending after its IPO; (ii) general trends in the IT market, as well as Pure Storage’s own historical sales trends, demonstrated that its first quarter 2017 sales growth for the quarter ending April 30, 2016, would be significantly lower than prior quarters; and (iii) its concomitant increases in sales and marketing and general and administrative expenses were not one-time expenses attributable to increasing the size of its sales force and sales footprint, but would continue in perpetuity.
If you purchased Pure Storage stock during the IPO on October 7, 2015, and wish to discuss this action or have any questions concerning your rights or interests, please contact attorney Darnell R. Donahue of Robbins Arroyo LLP at 800-350-6003, or you can complete the form below and we will contact you directly.