SAN DIEGO and SAN
FRANCISCO, April 21, 2015
/PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP
announces that an investor of Castlight Health, Inc. (NYSE: CSLT)
has filed a federal securities fraud class action complaint in the
Superior Court of the State of
California, County of San
Mateo. The complaint alleges that the company and
certain of its officers and directors violated the Securities
Exchange Act of 1933 in connection with Castlight's March 14, 2014 initial public stock offering of
Class B common stock. Castlight provides cloud-based software in
the United States.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/castlight-health-inc
Castlight Misrepresents Its Business Practices
According to the complaint, Castlight failed to disclose in its
registration statement for initial public offering the backlog the
company was experiencing due to implementation delays.
Specifically, the deployment of the company's technology was
not adequately scalable to achieve the growth in revenues, and
reduction of costs, to reach significant profitability. The
complaint further alleges that Castlight's inability to scale its
products, as well as a high rate of non-renewal, had a significant
negative impact on gross margins. Since the company's
March 14, 2014 IPO, Castlight stock
has declined over 53% from the IPO price of $16 per share to $7.49 on April 21,
2015.
Castlight Shareholders Have Legal Options
Concerned shareholders who would like more information about
their rights and potential remedies can contact attorney
Darnell R. Donahue at (800)
350-6003, DDonahue@robbinsarroyo.com, or via the shareholder
information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
shareholder rights law. The firm represents individual and
institutional investors in shareholder derivative and securities
class action lawsuits, and has helped its clients realize more than
$1 billion of value for themselves
and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a
similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
DDonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
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SOURCE Robbins Arroyo LLP