Northern California Record

Friday, November 15, 2019

Symantec securities owner alleges false statements in document led to inflated prices

By Charmaine Little | May 25, 2018


LOS ANGELES – A man alleges he was damaged when he purchased securities of a cybersecurity solution company at artificially inflated prices.

James Felix, individually and on behalf of all others similarly situated, filed a lawsuit against Symantec Corp., Gregory S. Clark and Nicholas R. Noviello on behalf of anyone, excluding the defendants, who purchased or publicly traded with Symantec securities between May 20, 2017, and May 10, 2018. The suit was filed May 17 in the U.S. District Court in the Northern District of California.

Felix alleged Symantec breached regulations under the Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, Rule 10b-5 promulgated.

The legal issues allegedly began after Symantec submitted its annual report, Form 10-K, that revealed its financial results and position for the fiscal year ending March 31, 2017. Clark and Noviello allegedly signed the document. 

The plaintiff alleges the document contained false and misleading statements as it didn’t reveal the negative aspects of the company’s financial status. The suit states that "Symantec’s internal controls over financial reporting were materially weak and deficient," according to the suit.

After the filing, the suit states the company's audit committee launched an internal investigation after a former employee expressed concerns.

The plaintiff alleges the defendants violated Section 10(b) of The Exchange Act Rule and 10b-5. The defendants were alleged to have known about the misleading information provided in the document, which reportedly led to an inflation in Symantec’s market price during the time frame in question.

The plaintiff requested to be certified as the class representative and that the defendants be ordered to pay the plaintiff and class members damages as well as prejudgment and post-judgment interest and lawyer fees.

He also requested a trial by jury. He is represented by Laurence M. Rosen of The Rosen Law Firm in Los Angeles.

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U.S. District Court for the Northern District of California