Did you lose money on investments in Nutanix? If so, please visit Nutanix, Inc. Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or pallocco@bernlieb.com to discuss your rights.
NEW YORK, April 19, 2023 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired the securities of Nutanix, Inc. (“Nutanix” or the “Company”) (NASDAQ: NTNX) between September 21, 2021 and March 6, 2023, inclusive (the “Class Period”). The lawsuit was filed in the United States District Court for the Northern District of California and alleges violations of the Securities Exchange Act of 1934.
Nutanix purports to provide a leading enterprise cloud platform, the Nutanix Cloud Platform, that consists of software solutions and cloud services that power its customers’ enterprise infrastructure.
In operating its cloud platform, Nutanix often utilizes software supplied by third-party providers. Indeed, the Company has stated that one of its “principal competitive factors” is “product interoperability with third-party applications, infrastructure software, infrastructure systems and platforms and public clouds.” Accordingly, Nutanix will pay software vendors a reduced cost to provide the Company with “evaluation software,” which Nutanix would use only for internal evaluation purposes in order to determine whether it will ultimately purchase the software for business use. If the Company elects to purchase the software, the vendor will charge Nutanix the full cost to implement the product in standard business usage, as opposed to merely a reduced evaluation cost.
Plaintiff alleges that Defendants made materially false and misleading statements throughout the Class Period. Specifically, Plaintiff alleges that Defendants failed to disclose that: (i) the Company maintained deficient internal controls relating to its use of licensed software and expense management; (ii) as a result of these deficiencies, the Company improperly used third-party evaluation software for business purposes over a multi-year period; and (iii) investigation and remediation of the foregoing — i.e., paying vendors the full cost to use their software for business purposes—would cause the Company to incur significant expenses.
On March 6, 2023, Nutanix issued a press release reporting selected preliminary second quarter fiscal 2023 financial results. Among other items, Nutanix reported that “Company management discovered that certain evaluation software from one of its third-party providers was instead used for interoperability testing, validation and customer proofs of concept over a multiyear period[,]” and that “it is likely that additional costs would be incurred to address the additional use of the software.” Furthermore, due to an ongoing Audit Committee investigation into the matter, Nutanix stated that “it does not expect to be able to [timely] file its Quarterly Report on Form 10-Q for the quarter ended January 31, 2023[.]”
On this news, Nutanix’s stock price fell $2.27 per share, or 7.89%, to close at $26.50 per share on March 7, 2023.
Then, on March 16, 2023, Nutanix issued a press release announcing that, on March 15, 2023, “the Company received a standard notification letter from Nasdaq stating that, because the Company has not yet filed its Quarterly Report on Form 10-Q for the quarter ended January 31, 2023, the Company is not in compliance with Nasdaq Listing Rule 5250(c)(1), which requires timely filing of all required periodic financial reports with the [SEC].”
If you wish to serve as lead plaintiff, you must move the Court no later than June 13, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased or otherwise acquired Nutanix securities, and/or would like to discuss your legal rights and options please visit Nutanix, Inc. Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or pallocco@bernlieb.com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
ATTORNEY ADVERTISING. © 2023 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
Contact Information:
Peter Allocco
Bernstein Liebhard LLP
https://www.bernlieb.com
(212) 951-2030
pallocco@bernlieb.com
