A lawsuit was filed on behalf of investors in Pure Storage Inc (NYSE:PSTG) shares over alleged securities laws violations and NYSE:PSTG investors should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 09/20/2016 -- An investor, who purchased shares of Pure Storage Inc (NYSE:PSTG), filed a lawsuit over alleged violations of Securities Laws by Pure Storage Inc in connection with certain allegedly false and misleading statements.
Investors who purchased shares of Pure Storage Inc (NYSE:PSTG) have certain options and should contact the Shareholders Foundation at email@example.com or call 858-779-1554.
According to the complaint the plaintiff alleges that the defendants violated Securities Laws. The plaintiff alleges on behalf of the shareholders, who purchased Pure Storage (NYSE: PSTG) common shares pursuant or traceable to its initial public offering ("IPO") on October 7, 2015 that the defendants violated the Securities Act of 1933.
The plaintiff claims that the Registration Statement in connection with the October 7, 2015 IPO was allegedly negligently prepared and contained untrue statements of material facts or omitted other facts necessary to make the statements not misleading.
More specifically, the plaintiff alleges that Pure Storage Inc failed to disclose and misrepresented that at the time of the IPO its sales personnel had aggressively pulled sales forward into the quarters prior to the IPO, resulting in reduced sales in the quarters ending after its IPO, that at the time of the IPO general trends in the IT market, as well as Pure Storage's own historical sales trends, demonstrated that its first quarter 2017 sales growth for the quarter ending April 30, 2016, would be significantly lower than prior quarters, and that at the time of the IPO its concomitant increases in sales and marketing and general and administrative expenses were not one-time expenses attributable to increasing the size of its sales force and sales footprint, but would continue in perpetuity.
Shares of Pure Storage Inc (NYSE:PSTG) declined from as high as $20.60 per share on October 15, 2015 to as low as $9.62 per share on June 20, 2016.
Those who purchased shares of Pure Storage Inc have certain options and should contact the Shareholders Foundation.
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