On January 21, 2009, the plaintiffs voluntarily dismissed the action without prejudice.
The class action complaint charges that two of the Company's senior officers, the former President and CEO and the CFO, violated the Securities Exchange Act of 1934 and breached their fiduciary duties by making and/or allowing false and misleading statements concerning the Company's business, operations and prospects. Specifically, the defendants allegedly knew but recklessly disregarded and failed to disclose to the investing public that: (i) the Company was facing increasing competition and lower-priced rival products were lengthening the time it took for VMware to close deals; (ii) customers were taking longer to sign lucrative multi-year enterprise license agreements, and were instead signing smaller, short-term contracts; and (iii) as a result of the foregoing, defendants misrepresented the Company's business and future prospects. The complaint further charges that, during the Class Period, Company insiders took advantage of the undisclosed adverse information by collectively selling 86,541 shares of their personally held VMware common stock for gross proceeds in excess of $5.8 million.
On January 21, 2009, Plaintiff filed a Notice voluntarily dismissing this case without prejudice as to all Defendants.