Updated: June 29, 2018
Status: Ongoing Case
On March 28, 2016, Labaton Sucharow was appointed lead counsel in a securities class action against Nimble Storage, Inc. Nimble is a Delaware corporation headquartered in San Jose, California, which manufactures and sells hardware, software, and services in the data storage market.
The lead plaintiff alleges that Nimble made material misrepresentations and omissions related to its investments in sales and marketing resources and the company’s sales of products to customers. Specifically, the company failed to inform investors that it had capped overall investments in sales and marketing and simultaneously embarked on a major shift of its sales and marketing spend to focus on large enterprise customers over their traditional smaller and medium-sized commercial customers. The market learned the truth about the defendants’ misrepresentations and omissions and the detrimental effect on the company of these new, undisclosed strategies in a series of corrective disclosures, which caused the company’s stock price to decrease and investors to suffer losses.
The plaintiffs filed a third amended consolidated complaint on June 29, 2017, which defendants moved to dismiss on July 24, 2017. The court dismissed the complaint on October 2, 2017. The plaintiffs appealed to the Ninth Circuit. As of June 29, 2018, the appeal has been fully briefed.
The case is In re Nimble Storage, Inc. Securities Litigation, No. 15-cv-05803 (N.D. Cal.). Labaton Sucharow represents lead plaintiff Arkansas Teachers Retirement System. The defendants are Nimble Storage, Inc. and four current senior executives, Suresh Vasudevan, Anup Singh Varun Mehta, and Dan Leary.