On May 17, 2018, investors sued Symantec Corporation (“Symantec” or the “Company”) in United States District Court, Northern District of California. Plaintiffs in the federal securities class action allege that they acquired Symantec stock at artificially inflated prices between May 20, 2017 and May 10, 2018 (the “Class Period”). They are now seeking compensation for financial losses incurred upon public revelation of the Company’s alleged misconduct during that time. Here’s everything you need to know about the Symantec class action lawsuit (SYMC class action lawsuit):

Summary of the Allegations

Company Background

Symantec (NASDAQ: SYMC) is the self-proclaimed “global leader” in cyber security. As such, it operates “one of the world’s largest cyber intelligence networks.”

The Company has been in business since 1982 and publicly traded on the NASDAQ since 1989. According to its website, Symantec holds at least 2,000 patents and now has more than 11,000 employees in more than 35 countries. It amassed more than $4 billion in total revenue in FY 2017.

Summary of Facts

Symantec and two of its senior officers and/or directors now stand accused of deceiving investors by lying and withholding critical information about the Company’s business practices and prospects during the Class Period.

Specifically, they are accused of omitting truthful information about the efficacy of the Company’s internal controls over financial reporting and its executive compensation practices from SEC filings and related material. By knowingly or recklessly doing so, they allegedly caused Symantec stock to trade at artificially inflated prices during the time in question.

The truth began to emerge after the market closed on May 10, 2018. The Company then reported that it would “likely have to delay the filing of its annual report for the fiscal year ended March 30, 2018.” The Company added that the reason for doing so stemmed from an internal investigation commenced by its Audit Committee “in connection with concerns raised by a former employee.”

Then, after the market closed four days later, Symantec issued another statement regarding the investigation.  In its second statement, the Company provided additional insight into the matter, saying the investigation is: “in connection with concerns raised by a former employee regarding the Company’s public disclosures including commentary on historical financial results, its reporting of certain Non-GAAP measures including those that could impact executive compensation programs, certain forward-looking statements, stock trading plans and retaliation.”

A closer look…

As alleged in the May 17 complaint, the Company repeatedly made misleading public statements during the Class Period.

For example, on a form filed with the SEC on May 19, 2017, the Company stated that its “internal control over financial reporting was effective as of March 31, 2017.”

On another form filed with the SEC on August 16, 2017, the Company said in pertinent part: “The overriding principle driving our compensation programs continues to be our belief that it benefits our employees, customers, partners and stockholders to have management’s compensation tied to our near- and long-term performance.”

On the same form, the Company also said that it uses “responsible pay policies to reinforce strong governance and enhance stockholder alignment.”

Impact of the Alleged Fraud on Symantec’s Stock Price and Market Capitalization

The following chart illustrates the stock price during the class period:

Actions You May Take

If you have purchased shares during the Class Period, you may join the class action as a lead plaintiff, remain a passive class member, or opt out of this litigation and pursue individual claims that may not be available to the class as a whole.

NOTE: The deadline to file for lead plaintiff in this class action is July 16, 2018. You must file an application to be appointed lead plaintiff prior to this deadline in order to be considered by the Court. Typically, the plaintiff or plaintiffs with the largest losses are appointed lead plaintiff.

In order to identify your potential exposure to the alleged fraud during the time in question, you may wish to perform an analysis of your transactions in Symantec common stock using court approved loss calculation methods.

Recently Filed Cases

Listed below are recently filed securities class action cases being monitored by us, along with the class period and the deadline to file a motion to be appointed as the Lead Plaintiff in the action.  Please contact us if you would like an LK report for any of these cases:

About Us

Levi & Korsinsky is a leading securities litigation firm with a hard-earned reputation for protecting investors’ rights and recovering losses arising from fraud, mismanagement and corporate abuse.  With thirty attorneys and offices in New York, Connecticut, California and Washington D.C., the firm is able to litigate cases in various jurisdictions in the U.S., England, and in other international jurisdictions.

Levi & Korsinsky provides portfolio monitoring services for high-net worth investors and institutional clients.  Our firm also assists investors in evaluating whether to opt-out of large securities class actions to pursue individual claims.

For additional information about this case or our institutional services, please contact us.