VMware Revenue AllegationsVMware Revenue Allegations Investors have filed a lawsuit against VMware Inc., alleging improper revenue accounting practices. According to the lawsuit, VMware executives engaged in insider trading while acting on behalf of a group of shareholders, manipulating the company’s revenue reporting. The U.S. District Court for the Northern District of California has granted class certification to the investors, allowing them to proceed with their claims on behalf of a larger group of shareholders. This is unusual in securities cases, as companies typically oppose such requests. According to the complaint, VMware falsely claimed that it would meet revenue targets for fiscal years 2019 and 2020. Two top executives allegedly sold their shares based on this information, benefiting from the subsequent decline in VMware’s stock price. The investors claim that VMware’s revenue statements were materially false and misleading, and that they suffered substantial losses as a result. The case highlights the importance of accurate and transparent financial reporting in public companies.
Investors allege that VMware Inc. manipulated its revenue accounting by allowing executives engaged in insider trading to act on behalf of a group of shareholders, a federal court has ruled.
The cloud computing company did not oppose the investors’ request for class certification, according to an opinion by Judge Edward J. Davila for the U.S. District Court for the Northern District of California. It’s at least the second recent instance of an uncontested class status request, which is unusual in securities cases.
- The investors allege that VMware falsely stated that it would meet revenue expectations for fiscal 2019 and 2020, and that two …
