According to the law firm press release, Imperva provides data security solutions focused on providing visibility and control over business data across systems within the data center.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s operations and business and its financial results. As a result of defendants’ false statements, Imperva securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high of $65.53 per share on March 6, 2014, and the Company’s top officers and directors were able to sell $25.9 million worth of their Imperva stock at inflated prices, including $11.8 million worth of stock sold by the Chief Executive Officer and the Chief Financial Officer.
On April 9, 2014, the Company issued a press release announcing its preliminary first quarter 2014 financial results. The Company reported preliminary total revenue in the range of $31.0 to $31.5 million, which was below the Company’s prior guidance of $36.0 to $37.0 million for the first quarter of 2014. Additionally the Company reported an expected net loss per share in the range of $(0.40) to $(0.44), below its prior guidance of $(0.33) to $(0.37) and a $(0.35) consensus estimate. The Company blamed “‘extended sales cycles on deals over $100,000,’” especially in the U.S., and stated that “‘intensifi[ed] competition for large orders’” and sales execution issues contributed to the lengthy sales cycles. As a result of this news, Imperva’s stock plummeted $21.73 per share to close at $28 per share on April 10, 2014, a one-day decline of nearly 44% on volume of 10.9 million shares.
On August 7, 2014, the Court issued an Order appointing lead plaintiff and approving lead counsel.
On September 17, 2015, the Court issued an Order granting Defendants' motion to dismiss, with leave to amend.
On August 30, 2017, the parties entered into a Stipulation of Settlement.