Town of Davie Police Pension Plan v. CommVault Systems, Inc., et al
|Court:||U.S. District Court, District of New Jersey|
|Class Period:||5/15/2013 - 4/24/2014|
|Case Contacts:||Gerald H. Silk, Avi Josefson|
On September 10, 2014, BLB&G filed a securities class action on behalf of Town of Davie Police Pension Plan against CommVault Systems, Inc. (“CommVault”) and certain of its senior executives.
The action asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and alleges that, during the Class Period, Defendants misrepresented CommVault’s revenue growth by booking and subsequently recognizing deferred software licensing revenue to mask slowing revenue growth, while at the same time denying that revenue growth was in fact decelerating. The action also alleges that the Company misrepresented that it was increasing investments in its sales force and hiring more sales employees in order to continue to drive growth through fiscal year 2014 and beyond. As a result of these misrepresentations, CommVault stock traded at artificially inflated prices during the Class Period.
The truth began to be revealed on January 29, 2014, when the Company disclosed that it had only met its revenue growth target because of the timely recognition of deferred software licensing revenue. The Company also disclosed that it had missed its sales force hiring target for the quarter. Then, on April 25, 2014, the Company announced that its fiscal fourth quarter profit dropped significantly as a result of significant deceleration in revenue growth. The Company also revealed that its financial results were negatively impacted, in large part, by inadequate staffing of sales and marketing personnel. These disclosures caused a material decline in the price of CommVault stock.
If you wish to serve as lead plaintiff for the Class, you must file a motion with the Court no later than November 12, 2014. Any member of the proposed class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class.
If you wish to discuss this action or have any questions concerning your rights or interests, please contact Avi Josefson (212-554-1493); firstname.lastname@example.org.