March 11, 2016 (Shareholders Foundation) - An investor in Apigee Corp (NASDAQ:APIC) filed a lawsuit in California for certain investors in against Apigee Corp, certain of its directors, and underwriters of Apigee’s initial public offering in April 2015 over alleged Violations of Securities Laws.
On April 24, 2015, Apigee’s stock traded as high as $20.50, the same day Apigee Corp sold 5.1 million shares of stock in its initial public stock offering (the “IPO”), raising $87 million in new capital.

However, the plaintiff alleges that the registration statement for the April 2015 IPO was negligently prepared and, as a result, contained untrue statements of material facts or omitted to state other facts necessary to make the statements made not misleading, and was not prepared in accordance with the rules and regulations governing its preparation.

Among other things, the plaintiff claims that the registration statement identified a reporting metric that did not comply with the Generally Accepted Accounting Principles and that at the time of the IPO, the company’s business and financial prospects were not what defendants had led the market to believe they were in the registration statement.

The plaintiff says that when the market learned, following the IPO, that Apigee’s business metrics and financial prospects were not as strong as represented in the registration statement, the price of Apigee common stock plummeted. Indeed, shares of Apigee Corp (NASDAQ:APIC) declined to as low as $5.35 per share in early February 2016.

On September 9, 2015, Apigee Corp announced its fourth quarter results. Apigee Corp reported that its Total Revenue rose from $52.70 million for the 12 months period that ended on July 31, 2014 to $68.61 million for the 12 months period that ended on July 31, 2015 and that its Net Loss for those respective time periods declined from $60.79 million to $50.35 million.