Blue Coat Systems, Inc.
Class Period: Nov 24, 2009 to May 27, 2010
Lead Plaintiff Deadline: Oct 29, 2011 + Deadline passed
Summary of Case:
On August 30, 2011, Scott+Scott LLP filed a class action complaint against Blue Coat Systems, Inc. ("Blue Coat" or the "Company") (NASDAQ: BCSI) and certain of the Company's officers in the U.S. District Court for the Northern District of California. The action for violations of the Securities Exchange Act of 1934 is brought on behalf of those purchasing the common stock of Blue Coat between November 24, 2009 and May 27, 2010, inclusive (the "Class Period").
If you purchased the common stock of Blue Coat during the Class Period and wish to serve as a lead plaintiff in the action, you must move the Court no later than 60 days from today. Any member of the investor class may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott (firstname.lastname@example.org, (800) 404-7770, (860) 537-5537 for more information. There is no cost or fee to you.
The complaint filed in the action charges that, during the Class Period, the Company issued false and misleading statements: overstating demand for Blue Coat's product and service offerings in its all important European market (from which 40% of sales had traditionally originated), understating the difficulties Blue Coat was experiencing selling its WAN optimization products after the initial installation, understating the extent to which customers were cancelling orders of Blue Coat products and services, understating the extent to which Blue Coat was losing market share to competitors, and that as a result, defendants lacked a reasonable basis for their positive statements about the Company's business and financial prospects. As a result, the complaint charges that Blue Coat's stock traded at artificially inflated prices during the Class Period, allowing Blue Coat's senior executives to sell tens of millions of dollars of stock at inflated prices.
On May 27, 2010, defendants shocked the market by announcing, after the close of trading, that in reality, demand for Blue Coat's product and services offerings had significantly weakened in "almost every country in Europe." Defendants also disclosed that Blue Coat had been unable to close multiple sales in Europe. As a result, defendants significantly reduced the Company's forward sales revenue and earnings guidance, causing the Company's stock price to fall precipitously by more than 25% per share on unusually high trading volume when trading resumed on May 28, 2010.
Scott+Scott has significant experience in prosecuting major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals and other entities worldwide.
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.