PHILADELPHIA, Aug. 02, 2019 (GLOBE NEWSWIRE) -- Kehoe Law Firm, P.C. announces that a class action lawsuit has been filed in United States District Court on behalf of purchasers of the common stock of Carbonite, Inc. ("Carbonite" or the "Company") (NASDAQ:CARB) during the period between February 7, 2019 and July 25, 2019 (the “Class Period”). The class action complaint charges Carbonite and certain of its officers with violations of the Securities Exchange Act of 1934.
If you purchased the securities of Carbonite during the Class Period February 7, 2019 - July 25, 2019 and suffered financial losses, please click Join a Securities Class Action to participate in the lawsuit or contact either Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, myarnoff@kehoelawfirm.com, info@kehoelawfirm.com, or John Kehoe, Esq., (215) 792-6676, Ext. 801, jkehoe@kehoelawfirm.com, to learn more about the lawsuit or the securities investigation.
Carbonite investors and shareholders have until September 30, 2019 to move the Court to serve as lead plaintiff.
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, defendants allegedly 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; and (iv) as a result of the foregoing, Carbonite lacked any reasonable basis for issuing its positive projections and financial forecasts.
Subsequently, on July 25, 2019, Carbonite, according to the complaint, announced that it was withdrawing the Server Backup VM Edition from the marketplace and consequently dramatically lowered its financial projections for fiscal 2019 and 2020. On the same day, Carbonite’s Chief Executive Officer announced he was leaving the Company.
On this news, the price of Carbonite stock, according to the complaint, dropped more than 24%, from a close of $23.90 per share on July 25, 2019 to a close of $18.01 per share on July 26, 2019.
The complaint also alleges that the Carbonite Defendants are liable for: (i) making false statements; or (ii) failing to disclose adverse facts known to them about Carbonite. Defendants’ fraudulent scheme and course of business that operated as a fraud or deceit on purchasers of Carbonite stock was a success, as it: (i) deceived the investing public regarding Carbonite’s prospects and business; (ii) artificially inflated the price of Carbonite common stock; (iii) enabled Defendants Mohamad S. Ali and Anthony Folger, as well as other Carbonite insiders, to collectively sell close to $3 million of their personally-held Carbonite stock to the unsuspecting public; and (iv) caused Plaintiff and other members of the Class to purchase Carbonite common stock at artificially inflated prices.
Kehoe Law Firm, P.C., with offices in New York and Philadelphia, is a multidisciplinary, plaintiff–side law firm dedicated to protecting investors from securities fraud, breaches of fiduciary duties, and corporate misconduct. Combined, the partners at Kehoe Law Firm have served as Lead Counsel or Co-Lead Counsel in cases that have recovered more than $10 billion dollars on behalf of institutional and individual investors.
