SAN DIEGO, May 27, 2015 /PRNewswire/ -- Robbins Geller
Rudman & Dowd LLP ("Robbins Geller")
(http://www.rgrdlaw.com/cases/sandisk/) today announced that a
class action has been commenced on behalf of an institutional
investor in the United States District Court for the Northern
District of California on behalf
of purchasers of SanDisk Corporation ("SanDisk") (NASDAQ:SNDK)
publicly traded securities during the period between April 16, 2014 and April
15, 2015 (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court
no later than 60 days from March 30,
2015. If you wish to discuss this action or have any questions
concerning this notice or your rights or interests, please contact
plaintiff's counsel, Darren Robbins of Robbins Geller at
800/449-4900 or 619/231-1058, or via e-mail at
djr@rgrdlaw.com. If you are a member of this class, you can
view a copy of the complaint as filed or join this class action
online at http://www.rgrdlaw.com/cases/sandisk/. Any member of the
putative class may move the Court to serve as lead plaintiff
through counsel of their choice, or may choose to do nothing and
remain an absent class member.
The complaint charges SanDisk and certain of its officers and
directors with violations of the Securities Exchange Act of
1934. SanDisk is a global provider of flash storage
products.
The complaint alleges that during the Class Period, defendants
issued materially false and misleading statements and/or omitted
adverse information regarding the Company's operations, sales and
product development, including that the Company was experiencing
production qualification delays on certain of its key products and
lower than expected sales of enterprise products. Defendants
also concealed problems associated with SanDisk's acquisition of
Fusion-io, Inc. ("Fusion io") in June 2014. Subsequently, the
Company was forced to announce drastically lower first quarter
revenue estimates compared to prior forecasts and withdraw its 2015
forecasts entirely. As a result of defendants' false
statements, SanDisk securities traded at artificially inflated
prices during the Class Period, with its stock price reaching a
high of $107.83 per share on
July 16, 2014. While SanDisk's stock
price was artificially inflated, the Company's top officers and
directors were able to sell over $35.8
million worth of their SanDisk stock.
On March 26, 2015, SanDisk
announced that it expected revenue for the first fiscal quarter of
2015 to be approximately $1.3
billion, rather than the previously forecast revenue of
$1.40 billion to $1.45 billion,
"primarily due to certain product qualification delays, lower than
expected sales of enterprise products and lower pricing in some
areas of the business." Moreover, the Company announced that it
expected these adverse trends to continue into 2015, and as a
result, the Company would not be able to make its other forecasts
for the quarter or meet its 2015 revenue guidance. As a result of
this news, SanDisk's stock price fell $14.98 per share to close at $66.20 per share on March
26, 2015, a one-day decline of 18% on volume of 32.3 million
shares.
Then, on April 15, 2015, after the
market closed, SanDisk issued a press release announcing its first
quarter fiscal 2015 financial results. The Company reported net
income of $39 million, or
$0.17 diluted earnings per share, and
revenue of $1.33 billion for the
quarter ended March 29, 2015. The
Company also announced a write-down of $61
million associated with Fusion-io. As a result of this
news, the price of SanDisk stock dropped $3.21 per share to close at $67.91 per share on April
16, 2015, a one-day decline of nearly 5% on volume of 23.6
million shares.
Plaintiff seeks to recover damages on behalf of all purchasers
of SanDisk publicly traded securities during the Class Period (the
"Class"). The plaintiff is represented by Robbins Geller, which has
extensive experience in prosecuting investor class actions
including actions involving financial fraud.
Robbins Geller, with 200 lawyers in ten offices, represents U.S.
and international institutional investors in contingency-based
securities and corporate litigation. The firm has obtained
many of the largest securities class action recoveries in history
and was ranked number one in the number of shareholder class action
recoveries in ISS's SCAS Top 50 report for 2014. Please
visit http://www.rgrdlaw.com for more information.
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SOURCE Robbins Geller Rudman & Dowd LLP