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Case Status:    ONGOING    
On or around 03/09/2016 (Ongoing date of last review)

Filing Date: September 10, 2014

According to the law firm press release, CommVault is an independent provider of data and information management software, which is sold under the Simpana brand name. CommVault derives about half of its annual revenue from licensing its software applications, with the remaining half of the Company's revenue coming in the form of services and maintenance revenue.

As alleged in the Complaint, Defendants misrepresented CommVault's revenue growth by booking and subsequently recognizing deferred software licensing revenue to mask slowing revenue growth, while at the same time denying that revenue growth was in fact decelerating. The Company also misrepresented that it was increasing investments in its sales force and hiring more sales employees in order to continue to drive growth through fiscal year 2014 and beyond. As a result of these misrepresentations, CommVault stock traded at artificially inflated prices during the Class Period.

On January 29, 2014, the Company disclosed that it had only met its revenue growth target because of the timely recognition of deferred software licensing revenue, effectively depleting CommVault's deferred licensing revenue. The Company also disclosed that it had missed its sales force hiring target for the quarter. Then, on April 25, 2014, the Company announced that its fiscal fourth quarter profit dropped significantly as a result of significant deceleration in revenue growth. Despite the Company's prior representations that deferred revenue was a poor indicator of growth, without the ability to recognize deferred software licensing revenue, the Company could no longer conceal the revenue growth deceleration it had been experiencing. The Company also revealed that its financial results were negatively impacted, in large part, by inadequate staffing of sales and marketing personnel. These disclosures caused a material decline in the price of CommVault stock.

On January 12, 2015, the Court issued an Order appointing lead plaintiff and approving lead counsel. An amended complaint was filed on March 19, 2015.

On December 17, 2015, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiffs were allowed to amend their complaint. A second amended complaint was filed on February 5, 2016.

COMPANY INFORMATION:

Sector: Technology
Industry: Software & Programming
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: CVLT
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: D. New Jersey
DOCKET #: 14-CV-05628
JUDGE: Hon. Joel A. Pisano
DATE FILED: 09/10/2014
CLASS PERIOD START: 05/15/2013
CLASS PERIOD END: 04/24/2014
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Litowitz Berger & Grossmann LLP (New York, NY)
    1285 Avenue of the Americas, 33rd Floor, Bernstein Litowitz Berger & Grossmann LLP (New York, NY), NY 10019
    212.554.1400 212.554.1444 · blbg@blbglaw.com
  2. Calcagni & Kanefsky
    One Newark Center, Calcagni & Kanefsky, NJ 07102
    862-397-1796 ·
  3. Klausner, Kaufman, Jensen & Levinson
    10059 Northwest 1st Court, Klausner, Kaufman, Jensen & Levinson, FL 33324
    954.916.1202 954.916.1232 ·
No Document Title Filing Date
COURT: D. New Jersey
DOCKET #: 14-CV-05628
JUDGE: Hon. Joel A. Pisano
DATE FILED: 02/05/2016
CLASS PERIOD START: 05/07/2013
CLASS PERIOD END: 04/24/2014
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Litowitz Berger & Grossmann LLP (New York, NY)
    1285 Avenue of the Americas, 33rd Floor, Bernstein Litowitz Berger & Grossmann LLP (New York, NY), NY 10019
    212.554.1400 212.554.1444 · blbg@blbglaw.com
  2. Calcagni & Kanefsky
    One Newark Center, Calcagni & Kanefsky, NJ 07102
    862-397-1796 ·
  3. Carella, Byrne, Cecchi, Olstein, Brody & Agnello, P.C.
    5 Becker Farm Road , Carella, Byrne, Cecchi, Olstein, Brody & Agnello, P.C., NJ 07068
    (973) 994-1700 (973) 994-1744 ·
  4. Labaton Sucharow LLP
    140 Broadway, Labaton Sucharow LLP, NY 10005
    212.907.0700 212.818.0477 · info@labaton.com
No Document Title Filing Date