According to the Complaint, Defendant Model N is a Revenue Management solutions provider to the life science and technology industries.
On December 11, 2012, Model N filed with the SEC a confidential draft Registration Statement on Form S-1, which would later be utilized for the IPO following several amendments in response to various rounds of comments by the SEC and being filed with the SEC publicly on February 13, 2013.
The Complaint alleges that The Registration Statement was negligently prepared and, as a result, contained untrue statements of material facts and/ or omitted to state facts necessary to make the statements made not misleading and was not prepared in accordance with the rules and regulations governing its preparation. Specifically, at the time of the IPO, Model N was then experiencing a disruption in its sales force which was negatively impacting the Company's ability to close sales and causing significant sales execution issues. Given the Company' s extended sales cycle for its products, the Company' s sales execution issues were highly likely to impact the Company's continuing operations, as the Company lost sales opportunities or sales were delayed, and, therefore, these issues were required to be disclosed in the Registration Statement but were not.
On January 5, 2015, the Court issued an Order granting the motion to remand this case. This action was remanded to the Superior Court of the State of California for the County of San Mateo.