Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Nutanix, Inc. (“Nutanix” or the “Company”) (NASDAQ: NTNX) securities between September 21, 2021 and March 6, 2023, inclusive (the “Class Period”). Nutanix investors have until June 13, 2023 to file a lead plaintiff motion.
Investors suffering losses on their Nutanix investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
On March 6, 2023, after the market closed, Nutanix disclosed that it would be unable to file its Quarterly Report on Form 10-Q for the quarter ended January 31, 2023 on time because the Company’s Audit Committee was conducting an investigation with the assistance of outside counsel. The investigation relates to “certain evaluation software from one of the Company’s third-party providers [that] was instead used for interoperability testing, validation and customer proofs of concept over a multi-year period.” The Company further disclosed that the issue is likely to result in “additional costs . . . incurred to address the additional use of the software.”
On this news, Nutanix’s stock price fell $2.27, or 7.8%, to close at $26.50 per share on March 7, 2023, thereby injuring investors.
Then, on March 16, 2023, Nutanix announced that it had received a letter from Nasdaq stating that, “because the Company has not yet filed its Quarterly Report . . . for the quarter ended January 31, 2023, the Company is not in compliance with Nasdaq Listing Rule 5250(c)(1), which required timely filing of all required periodic financial reports with the [SEC].”
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company maintained deficient internal controls relating to its use of licensed software and expense management; (2) as a result of these deficiencies, the Company improperly used third-party evaluation software for business purposes over a multi-year period; (3) 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; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased Nutanix securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
