According to the law firm press release, the complaint charges Dell and certain of its officers and directors with violations of the Exchange Act. During the Class Period, as alleged in the complaint, defendants issued materially false and misleading statements regarding the Company’s financial performance and future prospects and failed to disclose adverse facts, including that: (i) Dell was experiencing severe market pricing pressures associated with its notebook and desktop personal computer (“PC”) products, particularly in its European, Middle Eastern and African (“EMEA”) and Asia-Pacific, Japanese (“APJ”) markets; (ii) as a result of such extreme pricing pressures, Dell’s management issued a directive not to pursue certain notebook and desktop PC sales in its EMEA and APJ markets; (iii) Dell was experiencing weakening demand for its notebook and desktop PC products, particularly in its EMEA and APJ markets; and (iv) Dell was experiencing material undisclosed operational deficiencies within is sales function that were adversely impacting its Large Enterprise and Public business segments.
On May 22, 2012, after the close of trading, Dell issued a press release disclosing that revenues for its fiscal 2013 first quarter, the period ended May 4, 2012, were $14.4 billion, approximately one-half billion dollars less than Dell’s guidance and Wall Street estimates. Dell also disclosed that it was projecting revenues of just $14.7 to $15 billion for its fiscal 2013 second quarter, when securities analysts, based on defendants’ Class Period statements, had been projecting revenues of $15.4 billion. In response to these revelations, the price of Dell stock fell from its May 22, 2012 closing price of $15.08 per share to close at $12.49 per share on May 23, 2012, a decline of $2.59 per share, or more than 17%, its largest single-day decline in over 11 years, on extremely high volume of more than one billion shares traded, or approximately six times the average daily trading volume during the Class Period.
On April 30, 2015, the Court issued an Order transferring this case to the Western District of Texas.
Lead Plaintiff filed an amended Complaint on July 27, 2015. On September 8, Defendants filed a Motion to Dismiss the amended Complaint. On September 16, 2016, the Court issued an Order denying Defendants' Motion to Dismiss the amended Complaint.
On March 29, 2018, the Court issued an Order granting the motion to certify a class in this action. On September 13, 2019, the parties entered into a Stipulation of Settlement.