Amicus Therapeutics, Inc. (FOLD)
Whether directors and officers of Amicus Therapeutics, Inc. (FOLD) breached their fiduciary duties to the company and its shareholders.
Investigation
05/28/2021
Initial Lawsuit
05/28/2021
Lawsuit Progression
09/08/2021
Investigation regarding Nutanix’s customer base and growth, new customer acquisition and sales execution.
02/28/2019
Nutanix reports its Q2 2019 financial results. The company updated on its move “toward a subscription model” following “the impact of inadequate marketing spending for pipeline generation and slower than expected sales hiring.”
During the conference call, Nutanix’s executives explained that they “miss[ed] [their] pipeline targets” for the second quarter of FY2019 because “in fiscal 2018, [they] reallocated some of [their] lead generation spending to other priorities” and that “as a result, there was a four quarter period from Q4 2017 to Q3 2018 that [they] basically kept lead generation spend flat.” The executives added that they “again reallocated capital away from lead generation spend during their planning process” during the fiscal year 2019.
See more on Factual TimelineA Nutanix shareholder filed a securities class action lawsuit on behalf of all persons or entities who transacted in publicly traded call options and/or put options of Nutanix from November 30, 2017, to May 30, 2019, inclusive.
According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:
(i) according to CW1, CW2, CW7, and CW8 Nutanix was employing the unsustainable practice of pulling in sales from future quarters predicated on extreme discounting and, thus, Nutanix was only able to report the purported “increased” customers by engaging in the pull-in practice which cannibalized future sales;
(ii) Defendant Pandey knew that his statements that “Q2 will pop up naturally” and that Nutanix “added” customers were false and misleading because, as Defendants admitted, “during our planning process” for FY2018 Nutanix “kept lead generation spend flat” for FY2018 and was focusing on large existing Enterprise accounts, rather than “new” customers;
(iii) the statements deceptively misattributed Nutanix’s poor new customer growth to benign factors such as seasonality when, in reality, Defendant Pandey knew the he and Defendant Williams had made the “decision” in the “planning process” for the fiscal year to keep investment in the generation of new leads “flat;”
(iv) it gave the misleading impression that Nutanix’s pipeline was increasing and long-term growth was on track when, in fact, it had been decreasing in FY2018 because Defendants had diverted critical lead generation spending to engineering and Dell was providing the Company with fewer new sales leads.
09/08/2021
The court issued an order appointing the lead plaintiff and lead counsel.
11/01/2021
A motion to dismiss was filed with the court.
06/15/2022
Court Denied the motion to dismiss.
Whether directors and officers of Amicus Therapeutics, Inc. (FOLD) breached their fiduciary duties to the company and its shareholders.
Whether directors and officers of Inari Medical, Inc. (NARI) breached their fiduciary duties to the company and its shareholders.
Whether directors and officers of Payoneer Global Inc. (PAYO) breached their fiduciary duties to the company and its shareholders.
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.
Whether directors and officers of Kewaunee Scientific Corporation (KEQU) breached their fiduciary duties to the company and its shareholders.
Whether directors and officers of LegalZoom.com, Inc. (LZ) breached their fiduciary duties to the company and its shareholders.