Feeds

Legal vultures swoop on Compellent

Claim management misled the markets

Maximizing your infrastructure through virtualization

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. ®

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
Carbon tax repeal won't see data centre operators cut prices
Rackspace says electricity isn't a major cost, Equinix promises 'no levy'
Disaster Recovery upstart joins DR 'as a service' gang
Quorum joins the aaS crowd with DRaaS offering
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.