Gigamon Inc., Three Execs Facing Securities Class Action

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Individuals who purchased or acquired Gigamon, Inc. securities between October 27, 2016 and January 17, 2017 may be covered by a proposed class action filed against the IT company and three of its top executives over alleged securities law violations.

The lawsuit says Gigamon develops solutions that deliver “pervasive and dynamic intelligent visibility and control of traffic across networks.” The company’s “Visibility Fabric,” the case says, enables visibility, modification, enhancement, and control of network traffic. Gigamon’s “GigaSECURE Security Delivery Platform,” which is at the heart of the suit’s allegations, utilizes its Visibility Fabric to “streamline security operations by providing comprehensive visibility across the network to a variety of security tools including those typically used by enterprises.”

The 20-page lawsuit alleges the defendants in Securities and Exchange Commission filings made “materially false and/or misleading statements” and failed to disclose certain material adverse facts about its business operations and prospects. The complaint claims the defendants failed to disclose:

In mid-January 2017 the defendants put out a press release that announced its fourth quarter 2016 revenue missed the mark set by the company’s previous guidance. With this news, predictably, came a nearly 30 percent dip in Gigamon share prices on unusually heavy trading volume.