|By Business Wire||
|December 3, 2013 09:15 AM EST||
Law Offices of Howard G. Smith announces that it is investigating potential claims on behalf of investors of Fusion-io, Inc. (“Fusion-io” or the “Company”) (NYSE: FIO) concerning possible violations of federal securities laws. The investigation focuses on certain statements issued by the Company between August 10, 2012 and October 23, 2013.
Fusion-io designs and manufactures memory storage solutions using flash memory technology, primarily for a limited number of strategic customers, including Facebook, Inc. and Apple, Inc. The investigation is related to allegations that the Company misrepresented to investors that Fusion-io was a market leader in large-scale flash memory applications and was not facing competitive pressure or risk from the commoditization of flash memory products, and that the Company was able to anticipate demand from its strategic customers based on its years of experience as their flash memory supplier.
On January 30, 2013, the Company announced that it no longer anticipated achieving its previously issued revenue guidance for fiscal year 2013, citing a temporary two-quarter shift in the timing of purchases from Facebook and Apple. Then, on October 23, 2013, the Company revoked its prior revenue guidance and announced that its expected gross margin in 2014 would fall significantly. The Company also announced that its Chief Financial Officer and Chief Sales Officer were leaving the Company. Following these disclosures, stock analysts commented that lower revenue growth and falling margins could only mean that the competitive pressures facing Fusion-io were more significant than the Company had represented. Following this news, the price of Fusion-io stock declined $3.16 per share, to a closing price of $9.82 per share on October 24, 2013.
If you purchased Fusion-io shares between August 10, 2012 and October 23, 2013, if you have information or would like to learn more about these claims, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to [email protected], or visit our website at www.howardsmithlaw.com.