An investor in shares of FireEye Inc (NASDAQ:FEYE)) filed a lawsuit over securities laws violations by FireEye Inc. The plaintiff alleges that FireEye Inc and several of its top executives and directors made materially misleading statements and omitted material information.
The plaintiff claims that FireEye issued a statement in March 2014 saying its sales growth remained very strong and it appeared that profitability was becoming more achievable while later it was revealed that these representations were untrue and or failed to disclose that among other things FireEye was having problems integrating Mandiant into its business, as well as other future acquisitions, and the acquisition’s impact on future revenues, and that it was having problems with its securities breach detection software. The plaintiff alleges that as a result of certain materially misleading and inaccurate statements and/or omissions the value of FireEye common stock was artificially inflated and declined by over 60% since March 2014.

Indeed, from March 2014 to May 2014 shares of FireEye declined from over $95 per share to under $27 per share.