NEW YORK, April 11, 2014 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Northern District of California, on behalf of all persons who purchased or otherwise acquired the securities of Imperva, Inc. ("Imperva" or the "Company") (NYSE:IMPV) during the period between May 2, 2013 and April 9, 2014 (the "Class Period").
The Complaint alleges that during the Class Period, Defendants issued materially false and misleading statements regarding the Company's operations and business and its financial results. The Complaint alleges that Imperva securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high of $65.53 per share on March 6, 2014, and that the Company's top officers and directors were able to sell $25.9 million worth of their Imperva stock at inflated prices, including $11.8 million worth of stock sold by the Chief Executive Officer and the Chief Financial Officer.
On April 9, 2014, the Complaint alleges that the Company issued a press release announcing its preliminary first quarter 2014 financial results. The Company reported preliminary total revenue in the range of $31.0 to $31.5 million, which was below the Company's prior guidance of $36.0 to $37.0 million for the first quarter of 2014. Additionally the Company reported an expected net loss per share in the range of $(0.40) to $(0.44), below its prior guidance of $(0.33) to $(0.37) and a $(0.35) consensus estimate. The Company blamed "'extended sales cycles on deals over $100,000,'" especially in the U.S., and stated that "'intensifi[ed] competition for large orders'" and sales execution issues contributed to the lengthy sales cycles. As a result of this news, Imperva's stock plummeted $21.73 per share to close at $28 per share on April 10, 2014, a one-day decline of nearly 44% on volume of 10.9 million shares.
If you wish to serve as lead plaintiff, you must move the Court no later than June 10, 2014. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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