March 26, 2015
Bernstein Liebhard LLP is investigating whether SanDisk Corp. (“SanDisk” or the “Company”) (NASDAQ: SNDK) issued materially false and misleading statements to investors in violation of the federal securities laws.
SanDisk designs, develops, and manufactures flash memory storage solutions and software that are at the heart of many of the world’s largest data centers and embedded in advanced smart phones, tablets and PCs.
On the morning of March 26, 2015, SanDisk announced that the Company was cutting its revenue guidance for the first quarter of 2015 to $1.3 billion – a change of between $100 million to $150 million. The Company cited product qualification delays, lower than expected sales of enterprise products, and lower pricing in certain areas of its business as causes of the sudden guidance change. Just two months prior, the Company had forecasted $1.4 billion to $1.45 billion in Q1 revenue. Additionally, SanDisk withdrew its revenue guidance for FY 2015, but did not provide a new figure. SanDisk also announced the postponement of its May 2015 Investor Day.
In reaction to this news, SanDisk’s stock price plummeted over 17%, from a March 25, 2015 closing price of $81.18 per share to $66.11 per share in early trading on March 26, 2015. According to Bloomberg Business, this is SanDisk’s sharpest drop in almost five years.
Further, from November 3, 2014 to February 27, 2015, Company insiders sold approximately $20 million in SanDisk shares – unloading substantial amounts of their SanDisk holdings before the Company slashed its revenue forecasts.
If you invested in SanDisk and lost money, are interested in discussing your rights, and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or firstname.lastname@example.org.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients. The National Law Journal has recognized Bernstein Liebhard for twelve consecutive years as one of the top plaintiffs’ firms in the country.