NEW YORK, April 17, 2015 /PRNewswire/ -- Pomerantz LLP has
filed a class action lawsuit against SanDisk Corporation ("SanDisk"
or the "Company")(NASDAQ: SNDK) and certain of its
officers. The class action, filed in United States
District Court, Northern District of California, and docketed under 15-cv-01455, is
on behalf of a class consisting of all persons or entities who
purchased SanDisk securities between October
16, 2014 and March 25, 2015,
inclusive (the "Class Period"). This class action seeks to
recover damages against Defendants for alleged violations of the
federal securities laws under the Securities Exchange Act of 1934
(the "Exchange Act").
If you are a shareholder who purchased SanDisk securities during
the Class Period, you have until May 29,
2015 to ask the Court to appoint you as Lead Plaintiff for
the class. A copy of the Complaint can be obtained at
www.pomerantzlaw.com. To discuss this action, contact
Robert S. Willoughby at
rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll
free, x237. Those who inquire by e-mail are encouraged to include
their mailing address, telephone number, and number of shares
purchased.
SanDisk designs, develops, manufactures, and markest data
storage solutions in the United
States and internationally. The Company offers
removable cards, which are used in various applications and
consumer devices, including digital cameras, camcorders,
smartphones, tablets, and eReaders under the SanDisk Ultra, SanDisk
Extreme, and SanDisk Extreme PRO brands; and embedded products that
are used in mobile phones, tablets, notebooks, and other portable
and wearable devices, as well as in automotive and connected home
applications under the brand name iNAND.
The Complaint alleges that throughout the Class Period,
Defendants made materially false and misleading statements
regarding quality control within the corporate organizational
structure. Specifically, Defendants made false and/or
misleading statements and/or failed to disclose that:
(1) the Company was experiencing certain production
qualification delays on certain of its key products; (2) the
Company was experiencing lower than expected sales of enterprise
products; (3) the Company was vulnerable to lower pricing in some
areas of the business; and (4) as a result of the foregoing,
the Company would be forced to announce drastically lower first
quarter revenue estimates compared to prior forecasts, and withdraw
2015 forecasts for the Company's financial results in their
entirety.
On March 26, 2015, before the
market opened, the Company issued a press release announcing that
it expects revenue for the fiscal first quarter "to be
approximately $1.3 billion, depending
on final sell-through results, compared to the previously
forecasted revenue range of $1.40 billion to
$1.45 billion." As the Company disclosed, this reduction in
guidance was "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 expects continued impact to its 2015 financial
results from these factors as well as the previously identified
supply challenges, and now forecasts 2015 revenue to be lower than
the previously forecast.
On this news, shares of SanDisk declined $14.98 per share, or 18.45%, to close on
March 26, 2015, at $66.20 per share, on unusually heavy volume.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San
Diego, is acknowledged as one of the premier firms in the
areas of corporate, securities, and antitrust class litigation.
Founded by the late Abraham L.
Pomerantz, known as the dean of the class action bar, the
Pomerantz Firm pioneered the field of securities class actions.
Today, more than 70 years later, the Pomerantz Firm continues in
the tradition he established, fighting for the rights of the
victims of securities fraud, breaches of fiduciary duty, and
corporate misconduct. The Firm has recovered numerous
multimillion-dollar damages awards on behalf of class members. See
www.pomerantzlaw.com.
CONTACT:
Robert S.
Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
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SOURCE Pomerantz LLP