NEW YORK, Aug. 10, 2019 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Carbonite, Inc. ("Carbonite" or the "Company")(NASDAQ:CARB) of the September 30, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Carbonite stock or options between February 7, 2019 and July 25, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/CARB. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
FARUQI & FARUQI, LLP
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Attn: Richard Gonnello, Esq.
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The lawsuit has been filed in the U.S. District Court for the District of Massachusetts on behalf of all those who purchased Carbonite common stock between February 7, 2019 and July 25, 2019 (the "Class Period"). The case, Luna v. Carbonite, Inc., et al., No. 19-cv-11662 was filed on August 1, 2019, and has been assigned to Judge Leo T. Sorokin.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing 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 opportunistically on several larger deals during fiscal 2019.
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, Carbonite's share price fell from $23.90 per share on July 25, 2019 to a closing price of $18.01 on July 26, 2019: a $5.89 or a 24.64% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. 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. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Carbonite's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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