CASES
Compellent Technologies, Inc.
Class Period: Oct 28, 2009 to Apr 7, 2010
Lead Plaintiff Deadline: Jun 14, 2010 + Deadline passed
Summary of Case:
A securities class action has been filed against Compellent Technologies, Inc. (CML) (the "Company") on behalf of all securities purchasers from October 28, 2009 through April 7, 2010, inclusive ("Class Period"), in the United States District Court of Minnesota.
The complaint alleges that throughout the Class Period, defendants failed to disclose material adverse facts about the Company's true financial condition, business and prospects. Specifically, the complaint alleges that defendants failed to disclose: (i) that the Company was experiencing increasing competition which was forcing it to dramatically lower prices in order to continue to generate sales in line with internal expectations; (ii) that as a result of increased competition, the Company was being forced to raise expenditures associated with acquiring new customers far in excess of internal expectations; (iii) that the Company was experiencing significant issues with its sales force which were further complicating and exacerbating the negative impact of slowing sales; and (iv) that, based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company, its prospects and growth.
On April 7, 2010, the Company announced its preliminary financial results for the first quarter of 2010, the period ended March 31, 2010. Upon the disappointing announcement, shares of the Company's stock fell $4.54 per share, or 26%, to close at $13.02 per share, on unusually heavy trading volume.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.