Overview
Cohen Milstein represented Pavers and Road Builders Pension, Annuity, and Welfare Funds as a lead plaintiff in a consolidated securities class action against SanDisk Corporation (“SanDisk”); the Company’s former Chief Executive Officer (“CEO”), Sanjay Mehrotra (“Mehrotra”); and the Company’s former Chief Financial Officer (“CFO”), Judy Bruner (“Bruner”).
Plaintiffs alleged that the defendants made false and misleading statements regarding SanDisk’s supposed success integrating a key corporate acquisition for its all-important enterprise solid-state drive (SSD) business and the strength of SanDisk’s enterprise sales team and strategy, among other things. A host of undisclosed problems with the integration and the enterprise business, however, caused SanDisk’s enterprise revenue to fall, including revenue derived from the acquisition, and to badly miss internal sales forecasts. On October 23, 2019, the court granted final approval of a $50 million settlement.
Important Rulings
- On October 23, 2019, the court granted final approval of a $50 million settlement.
- In September 2018, the court certified the class of investors, which includes all persons and entities who purchased or acquired SanDisk’s publicly traded common stock from Oct. 16, 2014, through April 15, 2015, and were damaged as a result, but excluded those who sold their stock prior to the first corrective disclosure on March 26, 2015.
- On June 22, 2017, the Honorable Vince Chhabria denied, in part, Defendants’ motion to dismiss, and permitted Plaintiffs’ qualitative claims regarding SanDisk’s enterprise business to go forward.
Case Background
On July 15, 2016, Plaintiffs filed a Second Amended Consolidated Complaint before the U.S. District Court, Northern District of California, asserting claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
The Complaint alleges that Defendants made false and misleading statements regarding SanDisk’s supposed success integrating a key corporate acquisition for its all-important enterprise SSD business, the breadth and quality of SanDisk enterprise SSDs, and the strength of SanDisk’s enterprise sales team and strategy, even as a host of undisclosed problems with the integration and the enterprise business caused SanDisk’s enterprise revenue to fall, including revenue derived from the acquisition, and to badly miss internal sales forecasts.
In re: SanDisk LLC Securities Litigation, Case No. 15-cv-01455-VC, U.S. District Court, Northern District of California