NEW YORK, June 3, 2014 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of all persons who purchased or otherwise acquired the securities of Infoblox, Inc. ("Infoblox" or the "Company") (NYSE:BLOX) during the period between September 6, 2013 to February 10, 2014 (the "Class Period").
The Complaint alleges the Company and certain of its executives issued a series of materially false and misleading statements during the Class Period, violating federal securities laws. The Complaint alleges that on February 10, 2014, after the market close, the Company provided preliminary fiscal second quarter 2014 results and updated its outlook for fiscal year 2014. For the first time, according to the Complaint, the Company disclosed that it had been "discounting enormously to get deals." The Company revised its guidance downward both for its second quarter ending January 31, 2014 and for its fiscal year ending July 31, 2014. The Company stated that it now predicted revenue of $60 to $61 million for 2Q 2014, down from the previous expectation of $65 to $66 million and a non-GAAP earnings per share ("EPS") of $0.10 to $0.12, versus previous estimates of $0.09 to $0.11. For its full year outlook, the Company revised its external revenue projections to $250 to $254 million, down from previous guidance over the last two quarters of $270 to $276 million. EPS was updated to be $0.30 to $0.34 diluted earnings per share, lower than previous guidance over the last two quarters for full year earnings of $0.44 to $0.54. On this news, shares of Infoblox fell $15.95 per share to $17.19, or more than 48.12%, in intraday trading on February 11, 2014.
The Complaint also alleges that while defendants were previously falsely touting the Company's financial strength, Infoblox insiders sold $21.25 million of their personal holdings of Infoblox common stock.
If you wish to serve as lead plaintiff, you must move the Court no later than July 29, 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.
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Source:Gainey McKenna& Egleston