DENVER–(BUSINESS WIRE)–Shuman, Glenn & Stecker announces that it is investigating potential shareholder claims against certain officers and directors of Nutanix, Inc. (“Nutanix” or the “Company”) (NASDAQ: NTNX). Nutanix is a software company that provides products, services, and cloud-based infrastructure.
The Firm’s investigation relates to allegations raised in a class action lawsuit filed against Nutanix and certain of its senior officers in the U.S. District Court for the Northern District of California. The class action alleges that the defendants secretly diverted funds which had been allocated for the process of identifying and cultivating potential customers (referred to as “lead generation”) to research and development (“R&D”) instead, in order to accelerate the development of the Company’s desperately needed public cloud-based products. It is further alleged that the defendants made a series of misleading public statements which created the false impression that Nutanix was increasing its investment in its sales pipeline by hiring sufficient sales personnel and increasing lead generation activities. In reality, Nutanix was experiencing unprecedented sales force attrition and flattened spending on lead generation, while redirecting Company funds to R&D.
On February 28, 2019, Nutanix disclosed that it had not kept pace with its sales hiring goals and suffered from poor sales execution due to insufficient staffing and sales training. On this news, the Company’s stock price fell $16.39 per share, or more than 32%, to close at $33.70. On May 30, 2019, Nutanix announced that it missed revenue and billing targets due to continuing sales execution issues. On this news, the Company’s stock price fell $4.60 per share, or over 14%, to close at $28.07. Nutanix stock currently trades for approximately $24 per share. On September 11, 2020, the defendants’ motion to dismiss was denied in its entirety and the class action is now proceeding towards trial.
If you currently own Nutanix common stock and are interested in discussing your rights, or have information relating to this investigation, please contact Brett Stecker toll free at (866) 569-4531 or email Mr. Stecker at firstname.lastname@example.org
Shuman, Glenn & Stecker represents investors throughout the nation, concentrating its practice in stockholder litigation.