Shareholder Alert – Class Action Lawsuit Filed Against Box, Inc.
A class action lawsuit was recently filed in United States District Court for the Northern District of California, on behalf of persons and entities that purchased, or otherwise acquired, Box, Inc. (NYSE: BOX) (“Box” or the “Company”) securities between November 28, 2018 and June 3, 2019, inclusive (the “Class Period”). The Plaintiff is pursuing claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
Investors have 60 days from June 6, 2019 to move the Court to serve as lead plaintiff in the securities class action lawsuit. If you are a Box shareholder who has suffered losses, please click Join a Securities Class Action to participate in the class action lawsuit or contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], [email protected].
On February 27, 2019, Box reported fourth quarter revenue that fell below investors’ expectations, citing longer sales cycles for seven-figure deals.
On this news, the Company’s share price fell $4.64, or nearly 19%, to close at $20.24 on February 28, 2019, thereby injuring investors.
Subsequently, on June 3, 2019, Box lowered its fiscal 2020 revenue outlook to a range of $688 million to $692 million, from previous guidance of $700 million to $704 million, once again citing longer sales cycles for its larger deals.
On this news, the share price of Box fell as much as $1.30, or more than 7%, to close at $17.18 per share on June 4, 2019, thereby injuring investors further.
The class-action complaint 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 business, operations, and prospects of Box. Specifically, the Box Defendants failed to disclose: (1) that Box was unable to close large deals within the quarter; (2) and, as a result, the Company’s revenue would be materially impacted; and (3) as a result of the foregoing, the Box Defendants’ positive statements about the business, operations, and prospects of Box were materially misleading and/or lacked a reasonable basis.
Again, investors who purchased Box stock during the Class Period and suffered damages have 60 days from June 6, 2019 to seek appointment as lead plaintiff. Box investors can click Join a Securities Class Action to participate in the lawsuit.
Please note that no class has been certified in the above action, and until a class is certified, you are not represented by counsel unless you retain an attorney of your choice. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may serve together as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.
Kehoe Law Firm, P.C.
