RADNOR, Pa., Aug. 16, 2019 (GLOBE NEWSWIRE) — Kessler Topaz Meltzer & Check, LLP reminds Pivotal Software, Inc. (NYSE: PVTL) (“Pivotal”) investors that a securities fraud class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of those who purchased or otherwise acquired Pivotal common stock between 1) pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with Pivotal’s April 2018 initial public offering (“IPO”); and/or 2) between April 24, 2018 and June 4, 2019, inclusive (the “Class Period”).
FINAL DEADLINE REMINDER: Pivotal investors may, no later than August 19, 2019, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation please visit www.ktmc.com/pivotal-software-inc-securities-class-action.
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.
Investors who wish to discuss their legal rights or interests with respect to this securities fraud class action lawsuit are encouraged to contact Kessler Topaz Meltzer & Check (James Maro, Jr., Esq. or Adrienne Bell, Esq.) at (844) 887-9500 (toll free) or (610) 667 – 7706, or via e-mail at [email protected].
Pivotal investors may, no later than August 19, 2019, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a 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 affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(844) 887-9500 (toll free)
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