Carbonite, Inc.
| Company Name | Carbonite, Inc. |
| Stock Symbol | CARB |
| Class Period | February 07, 2019 to July 25, 2019 |
| Lead Plaintiff Motion Deadline | September 30, 2019 |
On July 25, 2019, after the market closed, the Company reported revenue of $121.5 million for second quarter 2019 due to “challenges in parts of [its] data protection business.” Moreover, the Company reduced its full year revenue guidance from a range of $457 to $471 million, to a range of $443.5 to $448.5 million. The Company’s Chief Executive Officer, Mohamad Ali, resigned.
On this news, shares of Carbonite fell as much as 25% in intraday trading on July 26, 2019, thereby injuring investors.
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: (1) that Carbonite’s Server Backup VM Edition was of poor quality and technologically flawed; (2) that Carbonite was receiving poor reviews and complaints from customers about the Server Backup VM Edition; (3) that the poor quality and technological flaws of the Server Backup VM Edition were acting as a “disruptive” factor throughout the Carbonite salesforce and keeping that sales organization from closing opportunistically on several larger deals during fiscal 2019; and (4) that as a result, defendants’ public statements were materially false and misleading at all relevant times.
Submit Your Information
If you suffered a loss on your Carbonite, Inc. investments or would like to inquire about joining an action to recover your loss under the federal securities laws, please complete the form below. Please note that submission of this form does not by itself form an attorney-client relationship nor does filing out this form mean you have joined any lawsuit.