According to the law firm press release, Defendant Nimble Storage provides flash-optimized storage platforms.
The complaint alleges that throughout the Class Period, defendants issued false and misleading statements and/or failed to disclose adverse material information regarding the Company's business and prospects, including that Nimble Storage was being negatively impacted by intense competition from well-entrenched, large competitors who were slashing prices in order to maintain market share, that Nimble Storage had made a conscious decision to focus its sales and marketing efforts towards the large enterprises market and to reduce sales efforts in the U.S. commercial market, and that due to this change in sales strategy and the intense price competition, Nimble Storage was losing sales in both sales channels. As a result of these false statements and/or omissions, Nimble Storage stock traded at artificially inflated prices during the Class Period, reaching as high as $31.60 per share, and enabling certain Company insiders to collectively sell more than 1.12 million shares of their personally held Nimble Storage common stock at artificially inflated prices for gross proceeds in excess of $31.4 million.
On November 19, 2015, after the close of the markets, Nimble Storage issued a press release announcing its financial results for the fiscal third quarter of 2016, the period ending October 31, 2015. For the quarter, the Company reported total revenue of $80.7 million, non-GAAP gross margin of 66.9%, a non-GAAP operating loss of $10.8 million or negative 13% of revenue, and a GAAP net loss of $28.6 million, or $0.36 per basic and diluted share.
In reaction to these announcements, on November 20, 2015, the price of Nimble Storage common stock fell $10.34 per share, or 51%, to close at $10.05 per share, on heavy trading volume.
On March 28, 2016, the Court issued an Order consolidating cases, appointing Lead Plaintiff, and approving Lead Counsel. A consolidated complaint was filed on June 10, followed by a corrected version of that complaint on July 15.