Lead Plaintiff Deadline: 06/01/2020
SUMMARY OF CASE:
A securities class action has been filed against VMware, Inc. (VMW) on behalf of all purchasers of VMware shares between March 30, 2019 through February 27, 2020. This case has been filed in the USDC – N.D.Cal.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, and/or failed to disclose that: (1) VMware’s reporting with respect to its backlog of unfilled orders was not in compliance with all relevant accounting and disclosure requirements; (2) the foregoing subjected the Company to a foreseeable risk of heightened regulatory scrutiny and/or investigation; and (3) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On February 27, 2020, after the markets closed and the same day that VMware announced its fourth quarter and full year financial results, the Company issued a press release announcing that the Enforcement Division of the SEC “requested documents and information related to VMware’s backlog and associated accounting and disclosures.” On this news, VMware’s stock price fell $15.11 per share, or over 11%.