SAN DIEGO–(BUSINESS WIRE)–$NTNX #NASDAQ—The Class: Robbins LLP informs investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Nutanix (NASDAQ: NTNX) between September 21, 2021 and March 6, 2023. Nutanix purports to provide a leading enterprise cloud platform, the Nutanix Cloud Platform, that consists of software solutions and cloud services that power its customers’ enterprise infrastructure.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Nutanix. Shareholders who want to act as lead plaintiff for the class must file their papers by June 13, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
What is this Case About: Nutanix, Inc. (NTNX) Misled Investors Regarding its Internal Controls and is Not Currently in Compliance with NASDAQ Listing Rule 5250(c)(1)
According to the complaint, during the class period, defendants failed to disclose that: (i) the Company maintained deficient internal controls relating to its use of licensed software and expense management; (ii) as a result of these deficiencies, the Company improperly used third-party evaluation software for business purposes over a multi-year period; and (iii) 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.
On March 6, 2023, Nutanix issued a press release reporting selected preliminary second quarter fiscal 2023 financial results. Among other items, Nutanix reported that “Company management discovered that certain evaluation software from one of its third-party providers was instead used for interoperability testing, validation and customer proofs of concept over a multi-year period[,]” and that “it is likely that additional costs would be incurred to address the additional use of the software.” Furthermore, due to an ongoing Audit Committee investigation into the matter, Nutanix stated that “it does not expect to be able to [timely] file its Quarterly Report on Form 10-Q for the quarter ended January 31, 2023[.]” On this news, Nutanix’s stock price fell $2.27 per share, or 7.98%, to close at $26.50 per share on March 7, 2023.
Then, on March 16, 2023, Nutanix issued a press release announcing that, on March 15, 2023, “the Company received a standard notification letter from Nasdaq stating that, because the Company has not yet filed its Quarterly Report on Form 10-Q for the quarter ended January 31, 2023, the Company is not in compliance with Nasdaq Listing Rule 5250(c)(1), which requires timely filing of all required periodic financial reports with the [SEC].”
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