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 VMWare, Inc. (“VMWare” or the “Company”) (NYSE: VMW) securities during the period from March 30, 2019 through February 27, 2020 (the “Class Period”). Investors have until June 1, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company failed to disclose that: (i) VMware’s reporting with respect to its backlog of unfilled orders was not in compliance with all relevant accounting and disclosure requirements; and (ii) the foregoing subjected the Company to a foreseeable risk of heightened regulatory scrutiny and/or investigation.
On February 27, 2020, the Company disclosed an SEC investigation into the Company’s backlog of unfilled orders. Specifically, VMWare advised investors that, “[i]n December 2019, the staff of the Enforcement Division of the [SEC] requested documents and information related to VMware’s backlog and associated accounting and disclosures.” The Company also advised investors that, although “VMware is fully cooperating with the SEC’s investigation,” it was “unable to predict the outcome of this matter at this time.”
On this news, VMware’s stock price fell $15.11 per share, or 11.1%, to close at $120.52 on February 28, 2020.
If you acquired VMWare securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.