A lawsuit was filed by an investor in Nimble Storage Inc (NYSE:NMBL) shares over alleged breaches of fiduciary duty by certain directors and NYSE:NMBL stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 05/04/2016 -- An investor in NYSE:NMBL shares filed a lawsuit against certain directors of Nimble Storage Inc over alleged breaches of fiduciary duties.
Investors who are current long term investors in Nimble Storage Inc (NYSE:NMBL shares, have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call 858-779-1554.
The plaintiff alleges that Nimble Storage Inc and certain of its executives issued news releases and analyst calls exaggerating Nimble Storage's success with its decision to shift its sales from small and medium-sized IT organizations to large enterprises and when Nimble Storage announced quarterly results that fell short of expectations shares of Nimble Storage declined. More specifically, the plaintiff says that in October 2014, Nimble Storage Inc introduced new products that were designed to compete for the data storage business of larger enterprises but by May 2015, well-entrenched, large competitors had slashed prices to maintain their market share, resulting in lower than expected sales for Nimble Storage Inc.
In December 2015 a lawsuit was filed against Nimble Storage Inc over alleged securities laws violations. The plaintiff in that lawsuit alleges that the Nimble Storage Inc issued certain allegedly 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. The plaintiff claims that as a result of these false statements and/or omissions, Nimble Storage stock traded at artificially inflated prices and enabled 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.
May 3, 2016, NYSE:NMBL shares closed at $6.86 per share.
Those who purchased shares of Nimble Storage Inc have certain options and should contact the Shareholders Foundation.
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