Pivotal investors may receive additional information about the case by clicking the link "Submit Your Information" above.
According to the complaint, Pivotal, together with its subsidiaries, provides a cloud-native application platform and services in the United States. Pivotal’s cloud-native platform, Pivotal Cloud Foundry (“PCF”), purportedly accelerates and streamlines software development by reducing the complexity of building, deploying, and operating cloud-native and modern applications. Pivotal also purportedly enables its customers to accelerate their adoption of a modern software development process and their business success using its platform through its strategic services, Pivotal Labs (“Labs”). Pivotal markets and sells PCF and Labs through its sales force and ecosystem partners.
In April 2018, Pivotal commenced the IPO, issuing over 42 million shares of Pivotal common stock to the investing public at $15.00 per share, all pursuant to the Registration Statement, raising more than $638 million in gross proceeds.
According to the complaint, on June 4, 2019, post-market, Pivotal reported its financial and operating results for the first quarter of fiscal year 2020, advising investors that “sales execution and a complex technology landscape impacted the quarter.” Wedbush Securities analyst Daniel Ives called the quarter a “train wreck” and characterized Pivotal’s operating results as “disastrous,” asserting that Pivotal’s “management team does not have a handle on the underlying issues negatively impacting its sales cycles and the activity in the field which gives us concern that this quarter will be the start of some ‘dark days ahead’ for Pivotal (and its investors).” Following this news, Pivotal’s stock price fell $7.65 per share, or over 40%, to close at $10.89 per share on June 5, 2019.
The complaint alleges that, in the Registration Statement and throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (i) Pivotal was facing major problems with its sales execution and a complex technology landscape; (ii) the foregoing headwinds resulted in deferred sales, lengthening sales cycles, and diminished growth as its customers and the industry’s sentiment shifted away from Pivotal’s principal products because Pivotal’s products were outdated, inadequate, and incompatible with the industry-standard platform; and (iii) as a result, Pivotal’s public statements were materially false and misleading at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 August 19, 2019 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 info@ktmc.com. 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.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-844-887-9500 (toll free) or 1-610-667-7706
Or by e-mail at info@ktmc.com