Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Carbonite, Inc. (“Carbonite” or the “Company”) (NASDAQ: CARB) common stock between February 7, 2019 and July 25, 2019, inclusive (the “Class Period”). Carbonite investors have until September 30, 2019 to file a lead plaintiff motion.
Investors suffering losses on their Carbonite investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
On July 25, 2019, after the market closed, the Company reported revenue of $121.5 million for second quarter 2019 due to “challenges in parts of [its] data protection business.” Moreover, the Company reduced its full year revenue guidance from a range of $457 to $471 million, to a range of $443.5 to $448.5 million. The Company’s Chief Executive Officer, Mohamad Ali, resigned.
On this news, shares of Carbonite fell as much as 25% in intraday trading on July 26, 2019, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Carbonite’s Server Backup VM Edition was of poor quality and technologically flawed; (2) that Carbonite was receiving poor reviews and complaints from customers about the Server Backup VM Edition; (3) that 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; and (4) that as a result, defendants’ public statements were materially false and misleading at all relevant times.
If you purchased Carbonite common stock, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190802005480/en/
Copyright Business Wire 2019