San Diego, CA -- (SBWIRE) -- 10/14/2014 -- An investor, who purchased shares of Model N Inc (NYSE:MODN), filed a lawsuit in over alleged violations of Federal Securities Laws by Model N Inc in connection with certain allegedly false and misleading statements made in connection with the company’s March 2013 initial public offering (“IPO”).

Investors who purchased shares of Model N Inc (NYSE:MODN) have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

The plaintiff alleges that the Registration Statement purported to warn investors about the extended sales cycle for the Company' s products without disclosing that at the time of the IPO the Company was then experiencing sales execution issues that threatened to further impede and delay the sales process, that the Registration Statement purported to warn investors about the importance of the Company' s direct sales force, but failed to disclose the sales execution issues then facing the Company, that the company issued certain statements that were inaccurate statements of material fact because they failed to disclose that the Company was then experiencing a disruption in its sales force which was negatively impacting the Company' s ability to close sales and causing significant sales execution issues.

The plaintiff says that Model N was required to disclose at the time of the IPO that it was then experiencing sales execution issues which were highly likely to impact continuing operations, but the Registration Statement contained no such disclosures and that given the Company' s extended sales cycle for its products, the Company' s sales execution issues were highly likely to impact the Company' s continuing operations, as the Company lost sales opportunities or sales were delayed, and, therefore, these issues were required to be disclosed in the Registration Statement but were not.

Model N Inc reported that its Total Revenue rose from $50.44 million for the 12 months period that ended on Sept. 30, 2009 to $84.26 million for the 12 months period that ended on Sept. 30, 2012. Shares of Model N Inc (NYSE:MODN) traded in July 2013 as high as $24.41 per share.

Then on September 9, 2013 Model N Inc provided a business update and preliminary guidance for its first quarter and its full year fiscal 2014. Shares of Model N Inc (NYSE:MODN) declined from as high as $24.41 per share in July 2013 to as low as $7.73 per share in November 2013.

Those who purchased shares of Model N Inc have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com