Feeds

Legal vultures swoop on Compellent

Claim management misled the markets

Choosing a cloud hosting partner with confidence

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. ®

Internet Security Threat Report 2014

More from The Register

next story
NSA SOURCE CODE LEAK: Information slurp tools to appear online
Now you can run your own intelligence agency
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
NASA launches new climate model at SC14
75 days of supercomputing later ...
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
BOFH: WHERE did this 'fax-enabled' printer UPGRADE come from?
Don't worry about that cable, it's part of the config
Stop the IoT revolution! We need to figure out packet sizes first
Researchers test 802.15.4 and find we know nuh-think! about large scale sensor network ops
SanDisk vows: We'll have a 16TB SSD WHOPPER by 2016
Flash WORM has a serious use for archived photos and videos
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
prev story

Whitepapers

Designing and building an open ITOA architecture
Learn about a new IT data taxonomy defined by the four data sources of IT visibility: wire, machine, agent, and synthetic data sets.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
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.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Managing SSL certificates with ease
The lack of operational efficiencies and compliance pitfalls associated with poor SSL certificate management, and how the right SSL certificate management tool can help.