Glancy Binkow & Goldberg LLP, representing investors of Fusion-io, Inc. (“Fusion-io” or the “Company”) (NYSE: FIO), has filed a class action lawsuit in the United States District Court for the Northern District of California on behalf of a class (the “Class”) comprising all purchasers of Fusion-io securities between August 10, 2012 and October 23, 2013, inclusive (the “Class Period”).
A COPY OF THE COMPLAINT IS AVAILABLE FROM THE COURT OR FROM GLANCY BINKOW & GOLDBERG LLP. PLEASE CONTACT US TOLL-FREE AT (888) 773-9224, OR AT (212) 682-5340, OR BY EMAIL TO SHAREHOLDERS@GLANCYLAW.COM TO DISCUSS THIS MATTER. IF YOU INQUIRE BY EMAIL PLEASE INCLUDE YOUR MAILING ADDRESS, TELEPHONE NUMBER AND NUMBER OF SHARES PURCHASED.
Fusion-io designs and manufactures memory storage solutions using flash memory technology, primarily for a limited number of strategic customers, including Facebook, Inc. and Apple, Inc. The Complaint alleges that during the Class Period the defendants misrepresented to investors that the Company 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, and also misrepresented that the Company was able to anticipate the demand from its strategic customers based on its years of experience as their flash memory supplier.
On January 30, 2013, the Company announced that it no longer anticipated achieving its previously issued revenue guidance for fiscal year 2013, citing a temporary two-quarter shift in the timing of purchases from Facebook and Apple. Then, on October 23, 2013, the Company revoked its prior revenue guidance and announced that its expected gross margin in 2014 would fall significantly. The Company also announced that the Chief Financial Officer and Chief Sales Officer were leaving the Company. Following these disclosures, stock analysts commented that lower revenue growth and falling margins could only mean that the competitive pressures facing Fusion-io were more significant than the Company had represented. Following this news, the price of Fusion-io stock declined 24%, or $3.16 per share, to a closing price of $9.82 per share on October 24, 2013.