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NEW YORK,, Aug. 13, 2019 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Carbonite, Inc. (“Carbonite” or the “Company”) (NASDAQ: CARB) in the United States District Court for the District of Massachusetts on behalf of those who purchased or acquired the securities of Carbonite between February 7, 2019 and July 25, 2019, inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ alleged violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder.
The Complaint alleges that throughout the Class Period, Defendants issued a series of false and/or misleading statements and failed to disclose material adverse information regarding the technological quality of the Server Backup VM Edition and its potential to add "meaningfully" to Carbonite's financial performance for fiscal 2019. Specifically, the Complaint alleges that defendants failed to disclose that: (i) Carbonite's Server Backup VM Edition was of poor quality and technologically flawed; (ii) Carbonite was receiving poor reviews and complaints from customers about the Server Backup VM Edition; and (iii) the poor quality and technological flaws of the Server Backup VM Edition were acting as a "disruptive" factor throughout the Carbonite salesforce and keeping that sales organization from closing on several larger deals during fiscal 2019. As a result of this information being withheld from the market, the Complaint alleges the price of Carbonite common stock was artificially inflated to more than $29 per share during the Class Period.
On July 25, 2019, Carbonite announced that it was withdrawing the Server Backup VM Edition from the marketplace and consequently lowering its financial projections for fiscal 2019 and 2020. The same day, Carbonite's Chief Executive Officer announced he was leaving the Company.
On this news, the price of Carbonite stock declined more than 24%, from a close of $23.90 per share on July 25, 2019 to a close of $18.01 per share on July 26, 2019.
Investors who purchased or otherwise acquired shares during the Class Period should contact the Firm prior to the September 30, 2019 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at email@example.com or firstname.lastname@example.org.
Please visit our website at http://www.gme-law.com for more information about the firm.