RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Box, Inc. (“Box” or the “Company”) (NYSE: BOX) securities between November 28, 2018 and June 3, 2019, inclusive (the “Class Period”).
Box shareholders may, no later than August 5, 2019, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Box and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
Box provides a cloud content management platform that enables secure access to content. The Class Period commences on November 28, 2018, when Box announced its third quarter 2018 financial results.
The complaint alleges that, on February 27, 2019, Box reported fourth quarter revenue that fell below investors’ expectations, citing longer sales cycles for seven-figure deals. Following this news, Box’s share price fell $4.64, or nearly 19%, to close at $20.24 on February 28, 2019.
Then, on June 3, 2019, after the market closed, 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, again citing longer sales cycles for its larger deals. Following this news, Box’s share price fell as much as $1.30, or more than 7%, to close at $17.18 per share on June 4, 2019.
The complaint alleges that, throughout the Class Period, the defendants failed to disclose to investors that: (1) Box was unable to close large deals within the quarter; (2) as a result, Box’s revenue would be materially impacted; and (3) as a result of the foregoing, the defendants’ positive statements about Box’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you are a member of the class, you may, no later than August 5, 2019, request that the Court appoint you as lead plaintiff of the class. 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 together serve 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. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.