PVTL.US
id: 331
Superior Court of California
Court20 Apr 2018
Class period End07 Nov 2022
Claim deadlinePivotal (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.
Case Status
Disbursed
Alleged Offence
Other
Suspected Party
Other
Security Type
Stocks
Trade Direction
Long
Plaintiffs
Jason Hill, Zhung Tran, Alandra Mothorpe
Attorneys
Scott+Scott, Hedin Hall LLP, and Hagens Berman Sobol Shapiro LLP
Judge
Hon.Charles R. Breyer
Administrator
A.B. Data Ltd
Court hearing date
01 December 2022
Settlement conditions
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
Trades matching type
FIFO
+$2,750,000
Cash Settlement Amount