A U.S. federal court has found that investors manipulated VMware Inc. and that executives involved in insider trading can represent a group of shareholders. The cloud computing company did not contest the investors’ request for a class action lawsuit, as stated by Judge Edward J. Davila from the U.S. District Court for the Northern District of California. This is one of the few cases where a class action motion was not opposed, a rare occurrence in securities litigation.
Investors allege that VMware provided false information regarding its revenue projections for fiscal years 2019 and 2020, leading to misleading statements. The case involves claims of insider trading by executives at the company.
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https://news.bloomberglaw.com/ip-law/VMware-investors-get-class-status-on-claims-of-faulty-accounting