12:10:14 EDT Mon 16 Sep 2019
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CARBONITE INC
Symbol U : CARB
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Deadline Reminder: The Law Offices of Howard G. Smith Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Carbonite, Inc.

2019-08-08 15:13 ET - News Release


BENSALEM, Pa. -- (Business Wire)

Law Offices of Howard G. Smith reminds investors of the upcoming September 30, 2019 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased Carbonite, Inc.(“Carbonite” or the “Company”) (NASDAQ: CARB) common stock between February 7, 2019 and July 25, 2019, inclusive (the “Class Period”).

Investors suffering losses on their Carbonite investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.

On July 25, 2019, after the market closed, the Company reported revenue of $121.5 million for second quarter 2019 due to “challenges in parts of [its] data protection business.” Moreover, the Company reduced its full year revenue guidance from a range of $457 to $471 million, to a range of $443.5 to $448.5 million. The Company’s Chief Executive Officer, Mohamad Ali, resigned.

On this news, shares of Carbonite fell as much as 25% in intraday trading on July 26, 2019, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Carbonite’s Server Backup VM Edition was of poor quality and technologically flawed; (2) that Carbonite was receiving poor reviews and complaints from customers about the Server Backup VM Edition; (3) that 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 opportunistically on several larger deals during fiscal 2019; and (4) that as a result, defendants’ public statements were materially false and misleading at all relevant times.

If you purchased common stock of Carbonite during the Class Period you may move the Court no later than September 30, 2019 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts:

Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com

Source: Law Offices of Howard G. Smith

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