According to the law firm press release, QLogic designs and supplies server and storage networking infrastructure products that provide, enhance, and manage computer data communication.
Specifically, the Complaint alleges that throughout the Class Period, defendants failed to disclose that: (1) the Company was being adversely impacted by lower than expected demand due to weakness in its enterprise server and storage markets; (2) the Company was being negatively impacted by operational issues including an inventory build-up at a major OEM customer; (3) as such, the Company’s financial results were being negatively impacted; and (4) as a result of the foregoing, the Company’s statements about its business, operations, and prospects lacked a reasonable basis.
On July 30, 2015, QLogic revealed that its financial results had been adversely impacted by “operational issues including an inventory build-up primarily at a major OEM customer.” On this news, the company’s shares fell $2.51 per share, over 22%, to close at $8.87 per share on July 31, 2015.
On September 29, 2015, this case was transferred intra-district to the Southern Division.
This case was voluntarily dismissed on March 4, 2016.