The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been brought on behalf of purchasers of the common stock of Fusion-io, Inc. (“Fusion-io” or the “Company”) (NYSE: FIO) between August 10, 2012 and October 23, 2013, inclusive (the “Class Period”).
If you purchased Fusion-io common stock during the Class Period, you may move the Court for appointment as lead plaintiff by no later than January 21, 2014. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Fusion-io investors who wish to learn more about the action and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the Fusion-io Securities Class Litigation
The action charges Fusion-io and certain of its senior officers and directors with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Fusion-io is a computer hardware and software systems company that designs and manufactures memory storage solutions using flash memory technology. Since Fusion-io’s initial public offering in 2011, a small number of what the Company calls “strategic” customers have accounted for a significant portion of the Company's revenues.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding Fusion-io’s financial performance and future prospects. Specifically, defendants misrepresented to investors that Fusion-io was a market leader in large-scale flash memory applications and was not facing any competitive pressure or risk from the commoditization of flash memory products. Defendants also issued positive revenue guidance and misrepresented that Fusion-io was able to anticipate the demand from its strategic customers based on its years of experience as their flash memory supplier. As a result of defendants’ false statements and omissions, Fusion-io’s common stock traded at artificially inflated prices during the Class Period.
On October 23, 2013, after the market closed, the Company revoked its prior revenue guidance and announced that its expected gross margin in 2014 would fall significantly, indicating that the competitive pressures facing Fusion-io were more significant than previously represented. The Company also announced the departure of its Chief Financial Officer and Chief Sales Officer. On this news, the price of Fusion-io common stock fell 24% from its closing price of $12.98 per share on October 23, 2013, to close at $9.82 per share on October 24, 2013, on unusually high trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
Since 2003, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs’ law firms in the nation. In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs’ law firms in the United States to receive this honor for the last ten consecutive years.
For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.
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Sharon M. Lee, 1-800-541-7358