In re CommVault Systems, Inc. Securities Litigation
Status: Ongoing Case
On January 12, 2015, the court appointed Arkansas Teacher Retirement System as lead plaintiff in this securities class action litigation against CommVault Systems, Inc. and certain individual defendants. CommVault Systems, Inc. is an independent provider of data and information management software and, prior to the second half of 2012, relied on its relationship with Dell, Inc. for much of its revenue.
As co-lead counsel, Labaton Sucharow filed a Second Amended Complaint on behalf of the lead plaintiff, alleging that CommVault Systems, Inc. engaged in an improper form of earnings management commonly referred to in accounting literature as “cookie jar” accounting. Specifically, the Second Amended Complaint alleges that the defendants delayed the recognition of software revenue in order to hide the truth that growth was decelerating after Dell, Inc. announced that it had acquired certain competitors of, and would thus be competing against, CommVault Systems, Inc.
On September 30, 2016, the court denied the defendant’s motion to dismiss. The parties are now engaged in discovery.
The case is In re CommVault Systems, Inc. Securities Litigation, No. 3:14-cv-05628 (D. N.J.). Labaton Sucharow represents lead plaintiff Arkansas Teacher Retirement System. The defendants are CommVault Systems, Inc., N. Robert Hammer, and Brian Carolan.