Nutanix, Inc.
Lead Plaintiff Deadline 06/13/2023
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of those who acquired Nutanix, Inc. (“Nutanix” or the “Company”) (NASDAQ: NTNX) securities during the period from September 21, 2021 through March 6, 2023 (the “Class Period”). Investors have until June 13, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Nutanix provides an enterprise cloud platform, the Nutanix Cloud Platform, that consists of software solutions and cloud services that power its customers’ enterprise infrastructures.
On March 6, 2023, Nutanix issued a press release reporting selected preliminary second quarter fiscal 2023 financial results, which stated in relevant part: “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 multi-year period . . . . The Company is in the process of assessing the financial reporting impact of this matter and it is likely that additional costs would be incurred to address the additional use of the software.” On this news, the price of Nutanix shares declined by $2.27 per share, or approximately 7.89%, from $28.77 per share to close at $26.50 on March 7, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as 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., by paying vendors the full cost to use their software for business purposes—would cause the Company to incur significant expenses.