Feeds

Legal vultures swoop on Compellent

Claim management misled the markets

Internet Security Threat Report 2014

Compellent is being investigated by a law firm about potentially false and misleading statements that violated US federal securities laws.

Compellent announced record third quarter 2009 results on October 28, 2009, sending its shares from nearly $18 per share to over $24 in January 2010. But on February 11 2010 it announced its Q1 2010 revenue guidance and shares dropped from $21.77 per share to $16.44 a day later. Then on April 07 2010 Compellent lowered its Q1 2010 revenue guidance. Shares dropped after the news from $17.50 to $13.20 the next day.

Today they are trading at $12.14, having almost halved in value.

The law firm Holzer Holzer & Fistel, LLC, is investigating potential violations of the federal securities laws by Compellent. Its investigation focuses on whether a series of statements regarding Compellent’s business, prospects and operations were materially false and misleading at the time they were made. Bring on the eDiscovery software.

Investors are separately being encouraged to contact the Shareholders Foundation, an investor advocacy group which researches shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal matters. It too claims to have detected a whiff of possible materially false and misleading statements by Compellent management.

The Shareholders Foundation is comprised of a network of legal experts who represent the shareholders in real cases.

STEC is another storage firm with strong investor dissatisfaction and is facing class action law suits of its own. These suits claim its management made false and misleading statements about business prospects when competing solid state drive (SSD) suppliers were making inroads into its customers, and that the largest customer, EMC, had over-ordered STEC product leading to revenue falls. ®

Beginner's guide to SSL certificates

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
'Urika': Cray unveils new 1,500-core big data crunching monster
6TB of DRAM, 38TB of SSD flash and 120TB of disk storage
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
SDI wars: WTF is software defined infrastructure?
This time we play for ALL the marbles
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
Oracle hires former SAP exec for cloudy push
'We know Larry said cloud was gibberish, and insane, and idiotic, but...'
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.