Gigamon investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, Gigamon develops solutions that deliver “pervasive and dynamic intelligent visibility and control of traffic across networks.” The Company claims its “Visibility Fabric” enables visibility, modification, enhancement, and control of network traffic. The Company’s “GigaSECURE Security Delivery Platform” purportedly leverages its Visibility Fabric to streamline security operations by providing comprehensive visibility across the network to a variety of security tools including those typically used by enterprises.
The Class Period commences on October 27, 2016, when the Company held a conference call with investors and analysts to discuss the Company’s third quarter 2016 financial results. On the call, defendant Michael J. Burns also announced the Company’s fourth quarter 2016 financial guidance, including “revenue in the range of $91 million to $93 million.”
The complaint alleges that defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects throughout the Class Period. Specifically, defendants failed to disclose: (1) that Gigamon was experiencing reduced product bookings in its North America West region; (2) that several of the Company’s significant customers were deferring purchasing decisions into 2017; (3) that the Company failed to properly include these trends in its financial guidance; and (4) that, as a result of the foregoing, defendants’ statements about Gigamon’s business, operations, and prospects, including statements about its revenue guidance, were false and misleading and/or lacked a reasonable basis.
On January 17, 2017, the Company issued a press release entitled “Gigamon Announces Preliminary Fourth Quarter and Fiscal Year 2016 Results.” Therein, the Company disclosed preliminary fourth quarter 2016 revenue of “$84.5 million to $85.0 million, compared to the company’s prior guidance of $91 million to $93 million.” The press release also quoted defendant Paul Hooper as stating “fourth quarter revenue was below our prior guidance” and that “[f]ourth quarter revenue fell short primarily due to lower than expected product bookings in our North America West region, as several significant existing customer accounts deferred purchasing decisions into 2017.”
Following this news, the price of Gigamon common stock fell $12.65 per share, or 28.7%, to close at $31.40 per share on January 18, 2017, thereby injuring investors.
If you are a member of the class described above, you may no later than March 28, 2017 move the Court to serve as a lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequatley represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org.
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