On or around 11/20/2020 (Other)
Filing Date: August 01, 2019
According to the Complaint, Carbonite is a software company that provides cloud-based backup services, including the Server Backup VM Edition for managed services providers (“MSPs”), which was designed to allow MSPs to protect their virtual data both locally and in their own cloud.
The Complaint alleges that during the Class Period, Defendants issued materially false and misleading statements and/or failed to disclose adverse information regarding the technological quality of the Server Backup VM Edition and its potential to add “meaningfully” to Carbonite’s financial performance for fiscal 2019. Specifically, the Complaint alleges Defendants failed to disclose that: (i) Carbonite’s Server Backup VM Edition was of poor quality and technologically flawed; (ii) Carbonite was receiving poor reviews and complaints from customers about the Server Backup VM Edition; and (iii) the poor quality and technological flaws of the Server Backup VM Edition were acting as a “disruptive” factor throughout the Carbonite salesforce and keeping that sales organization from closing opportunistically on several larger deals during fiscal 2019.
On November 21, 2019, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. Lead Plaintiff filed a consolidated amended Complaint on January 15, 2020. Defendants filed a Motion to Dismiss the consolidated amended Complaint on March 10. On October 22, the Court issued an Order granting Defendants' Motion to Dismiss. The claims were dismissed with prejudice. On November 20, Plaintiff filed a notice appealing the Court's Dismissal Order.
Company & Securities Information
Defendant: Carbonite, Inc.
Industry: Software & Programming
Headquarters: United States
Ticker Symbol: CARB
Company Market: NASDAQ
Market Status: Public (Listed)
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