VMware investors may receive additional information about the case by clicking the link "Submit Your Information" above.
According to the complaint, VMware provides software in the areas of hybrid cloud, multi-cloud, modern applications, networking and security, and digital workspaces in the United States and internationally, and sells its products through distributors, resellers, system vendors, and systems integrators..
The Class Period commences on March 30, 2019 when, during aftermarket hours, VMware filed an Annual Report on a Form 10-K with the SEC, reporting its financial and operating results for the quarter and fiscal year ended February 1, 2019. With respect to VMware’s backlog, the Form 10-K reported that: 1) “[a]s of February 1, 2019, our total backlog was $449 million”; 2) “backlog related to licenses was $147 million, which we generally expect to deliver and recognize as revenue during the following quarter”; 3) “[b]acklog totaling $34 million as of February 1, 2019 is excluded from the remaining performance obligations because such contracts are subject to cancellation until fulfillment of the performance obligation occurs”; and 4) “[a]s of February 2, 2018, our total backlog was approximately $285 million and our backlog related to licenses was approximately $99 million.”
The complaint alleges that, on February 27, 2020, during after-market hours, VMware filed a Current Report on a Form 8-K with the SEC, disclosing an SEC investigation into its backlog of unfilled orders. Specifically, that Form 8-K advised investors that “[i]n December 2019, the staff of the Enforcement Division of the [SEC] requested documents and information related to VMware’s backlog and associated accounting and disclosures.” The Form 8-K also advised investors that, although “VMware is fully cooperating with the SEC’s investigation,” it was “unable to predict the outcome of this matter at this time.” Following this news, VMware’s stock price fell $15.11 per share, or 11.14%, to close at $120.52 per share on February 28, 2020.
The complaint alleges that, throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (i) VMware’s reporting with respect to its backlog of unfilled orders was not in compliance with all relevant accounting and disclosure requirements; (ii) the foregoing subjected VMware to a foreseeable risk of heightened regulatory scrutiny and/or investigation; and (iii) as a result, VMware’s public statements were materially false and misleading at all relevant times.
If you are a member of the class described above, you may no later than June 1, 2020 move the Court to serve as 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 adequately 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. Returning the attached form or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her 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 1-844-887-9500 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.
Kessler Topaz Meltzer & Check, LLP
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