Robbins Arroyo LLP: SanDisk Corp. Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that an investor of SanDisk Corp. (NASDAQGS: SNDK) 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 October 16, 2014 and March 25, 2015. SanDisk designs, develops, manufactures, and markets data storage solutions.
SanDisk Misrepresents Its Business Practices
According to the complaint, SanDisk made materially false and misleading statements regarding quality control within the corporate organizational structure and failed to disclose that it was experiencing: (i) product qualification delays; (ii) lower than expected sales of enterprise products; and (iii) lower pricing in some areas of business, all of which would have a negative future financial impact on the company. The truth came out on March 26, 2015, according to the complaint, when SanDisk revealed that it expected first quarter revenue to be approximately $1.3 billion, despite a previously forecasted revenue range of $1.4 to $1.45 billion, and lowered its overall 2015 revenue forecast. On this news, shares of SanDisk dropped $14.98, or over 18%, to close at $66.20 per share.
SanDisk 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.