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NortonLifelock Inc.


A securities class action has been filed against NortonLifelock Inc. f/k/a Symantec Corporation (NLOK) on behalf of a class consisting of all persons and entities that purchased Symantec common stock between May 11, 2017 through August 2, 2018.  This case has been filed in the USDC – AZ.

The complaint alleges that Defendants misled investors about Symantec’s financial performance and accounting practices.   During the Relevant Period, Defendants Clark, Symantec’s former Chief Executive Officer (“CEO”), Noviello, its former Chief Financial Officer (“CFO”), and Garfield, its former Chief Accounting Officer (“CAO”) reported financial results that violated GAAP and made non-GAAP adjustments and related statements that were materially false and misleading. Defendants engaged in a host of improper and unethical accounting practices, including prematurely booking revenues, inflating non-GAAP operating income by miscategorizing hundreds  of millions  of dollars  in  ordinary  business  expenses  as  “transition”  and “transformation” costs  (“T&T”),  and concealing that the Company’s rising deferred revenues were due to longer contract terms rather than meaningful sales growth.

The truth began to emerge in May 2018, when Symantec shocked investors by announcing that its Audit Committee had launched an internal investigation after receiving a whistleblower complaint that was so serious the Company felt compelled to report it to the SEC. Then, in August 2018, Symantec announced the preliminary findings of the Audit Committee investigation, including that the Company’s reported financials were “open from an accounting perspective” and “subject to adjustment.”  In response to  these disclosures, Symantec’s stock price plummeted by over $11 per share, including a 20 33% single-day decline that represented the worst day of trading in Symantec stock in nearly 17 years.

 

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Securities