SAN DIEGO & SAN JOSE, Calif.--(BUSINESS WIRE)--
Shareholder rights law firm Robbins Arroyo LLP announces that investors filed a class action complaint against Nutanix, Inc. (NTNX) for alleged violations of the Securities Exchange Act of 1934 pursuant to March 2, 2018 and February 28, 2019. Nutanix is an enterprise cloud platform provider.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/nutanix-inc/
Nutanix Accused of Misleading Investors
According to the complaint, Nutanix executives repeatedly reassured investors of the company’s pipeline strategy by noting the development and growth of its global sales force in various filings and conference calls. However, Nutanix failed to disclose that it had reallocated lead generation spending to other priorities. This decision caused a large disruption in Nutanix’s sales execution, which negatively impacted Nutanix’s sales pipeline and sales growth. On February 28, 2019, Nutanix announced its second quarter fiscal 2019 results and reported third quarter guidance that was below analysts' expectations. Management acknowledged that "inadequate marketing spend for pipeline generation and slower than expected sales hiring" were the reasons for the weak guidance. Additionally, Nutanix acknowledged that, despite earlier contrary assertions, its product portfolio was in “chaos.” On this news, Nutanix’s stock price fell $16.39 per share, more than 32%, to close at $33.70 per share on March 1, 2019.
Nutanix Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.