NEW YORK, Dec. 11, 2013 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in United States District Court for the Northern District of California, on behalf of all persons who purchased securities of Violin Memory, Inc. ("Violin Memory" or the "Company") (NYSE:VMEM) pursuant and/or traceable to the Registration Statement and Prospectus issued in connection with Violin Memory's September 27, 2013 initial public stock offering (the "IPO").
The Complaint alleges that Defendants violated the Securities Act of 1933. The Complaint also alleges that during the Class Period, Violin Memory conducted its IPO during the lead-up to the 2013 U.S. government shutdown, which was of significant importance to the Company because the U.S. government is a large indirect customer of the Company. According to the Complaint, the Registration Statement and Prospectus used by Defendants to sell Violin Memory shares in the IPO (and thereafter) were negligently prepared and contained false and misleading statements and/or failed to disclose, among other things, that at the time of the IPO Violin Memory's sales had already been adversely affected by the looming government shutdown. In addition, the Complaint alleges the Company's sales and research and development expenses had significantly grown during the third quarter 2013, increasing its cash burn-rate to an unsustainably high rate based on the Company's cash on hand.
If you wish to serve as lead plaintiff, you must move the Court no later than January 27, 2014. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at email@example.com or firstname.lastname@example.org.
Attorney Advertising -- Prior results do not guarantee a similar outcome with respect to any future matter. Please visit our website at http://www.gme-law.com for more information about the firm.
Source:Gainey McKenna& Egleston