According to the law firm press release, Vocera is a provider of mobile communication products and services based in San Jose, California. The Company offers software applications, hands-free wearable voice-controlled communication badges, smartphones, and other wireless devices to hospitals and to other enterprises where workers are highly mobile.
The securities class action charges that, in the Company's offering materials and throughout the Class Period, Vocera made a series of false and misleading statements concerning the Company's financial condition that caused the Company's shares to trade at an artificially inflated price.
Specifically, the complaint alleges that Vocera failed to disclose the severity of the negative impact that healthcare reform and federal budget sequestration were having on sales of the Company's communication products to hospitals.
On May 2, 2013, after the markets closed, Vocera shocked the investing public when it announced financial results for the first quarter 2013 that were significantly worse than expected. The Company reported revenue of $22.4 million, and non-GAAP earnings per share of $0.07, far below analysts' expectations and previously released guidance. The Company also sharply reduced its previously stated revenue guidance for full-year 2013, from between $120 million and $130 million, to between just $100 million and $110 million. Furthermore, the Company reduced its guidance for non-GAAP earnings per share from a profit of $0.33 to $0.51 to a loss of $0.06 and a profit of $0.18.
The complaint alleges that, in reaction to Vocera's May 2, 2013 announcement and earnings call, the price of Vocera common stock plummeted over 37% – closing at an all-time low of $12.15 per share on May 3, 2013, resulting in millions of dollars of losses to class members.
On November 20, 2013, the Court issued an Order consolidating related actions, appointing lead plaintiff, and approving lead counsel. Lead Plaintiffs filed a consolidated complaint on September 19, 2014.
On February 11, 2015, the Court issued an Order granting in part and denying in part Defendants' Motions to Dismiss.
On January 15, 2016, the parties filed a Stipulation of Settlement. This Settlement was preliminarily approved by the Court on March 4.