Carbonite Dodges Securities Suit Over Dud Software
Law360 (October 23, 2020, 2:27 PM EDT) -- Carbonite Inc. escaped a stock suit for good Thursday claiming it lied to investors by launching a data-backup product it knew would never work, artificially boosting the Boston firm's share price until it finally gave up on the product.
U.S. District Judge Leo T. Sorokin said the class action suit led by the Construction Industry and Laborers' Joint Pension Trust came up short in making its case that then-CEO Mohamad Ali and then-CFO Anthony Folger intended to fool investors about the ultimately unsuccessful product, known as the Server Backup VM Edition, or VME.
To Judge Sorokin, the two executives' optimistic comments...
Stay ahead of the curve
In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.
Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
Create custom alerts for specific article and case topics and so much more!