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id: 331, Created by Stan Vick Chase, Scout
20 April 2018Class period End
07 November 2022Claim deadline
Pivotal (PVTL) agreed to pay $2.75 million to settle a securities class action lawsuit accusing the Company of deceiving investors about business and its prospects in IPO documents.
The securities class action was on behalf of all those who purchased or otherwise, acquired Pivotal common stock pursuant or traceable to the registration statement and prospectus issued in connection with Pivotal's April 20, 2018, IPO.
The complaint claimed that Pivotal, Dell, certain Pivotal officers and directors, and the underwriters of the IPO were issuing material misrepresentations and omissions in the Registration Statement and Prospectus used to effectuate the IPO. Specifically, the Registration Statement and Prospectus failed to disclose that, at the time of the IPO:
- Pivotal's nontraditional Pivotal Container Services product offering was not integrated with the industry standard, Kubernetes;
- given internally projected losses, Pivotal's alleged controlling parent, Dell, was already directing Pivotal executives in negotiations to sell off Pivotal to VMware, Inc. (another alleged Dell-controlled subsidiary);
- Dell was directing these undisclosed negotiations to maximize its own tax benefits at the expense of Pivotal shareholders. Defendants deny all wrongdoing alleged in this Action.
Pivotal agreed to settle with investors to avoid further litigation.
Jason Hill, Zhung Tran, Alandra Mothorpe
Scott+Scott, Hedin Hall LLP, and Hagens Berman Sobol Shapiro LLP
Superior Court of California, County of Santa Clara
Hon.Charles R. Breyer
A.B. Data Ltd
Court hearing date
01 December 2022
purchased or otherwise acquired Pivotal common stock pursuant or traceable to the registration statement and prospectus issued in connection with Pivotal's April 20, 2018 IPO
+$2,750,000Total Settlement Amount