NEW YORK, Dec. 15, 2014 (GLOBE NEWSWIRE) -- Attorney Advertising. Stull, Stull & Brody, a New York based law firm with offices in Beverly Hills that specializes in representing investors nationwide, announces that a federal securities fraud lawsuit has been filed and that it has commenced an investigation into possible breaches of fiduciary duty by the directors and officers of FireEye, Inc. ("FireEye" or the "Company") (Nasdaq:FEYE).
On May 6, 2014, FireEye announced its first quarter results, surprising investors and analysts because its $24.3 million in product revenue fell meaningfully short of analysts' estimates of $31 million, reflecting a move away from FireEye's organic software business and towards service-oriented offerings lacking the same profitability potential. In reaction to these disclosures, FireEye closed at $28.65, down $8.48 per share, a 23% decline wiping out over $1.25 billion in market capitalization. FireEye's stock continued its precipitous decline, plummeting to close $25.76 on October 10, 2014, down 73.1% from $95.63 on March 5, 2014. Notwithstanding FireEye's declining product revenue and the marked turn away from its organic software business, Defendants continuously touted its organic and acquired growth as reasons for optimism. Finally, on November 4, 2014, after the market closed, FireEye released disappointing third quarter results that missed analysts' expectations, and further revealed the Company's virtual abandonment of its core software product business model, resulting in a quarterly loss of $0.51 per share.
Stull, Stull & Brody is investigating, among other things, whether there were breaches of fiduciary duties in connection with (1) violations of the Company's policies by its executives, including the sale of tens of millions of dollars in shares and a possible leak of information to third parties; (2) wasting of corporate assets; (3) the adequacy of FireEye's internal controls, and; (4) the accuracy of FireEye's financial statements.
If you are a shareholder of FireEye and have questions about your legal rights or interests with respect to these matters, please contact Michael Klein, Esq. at Stull, Stull & Brody by e-mail at FEYE@ssbny.com, by calling toll-free 1-800-337-4983, by fax to 1-212-490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. You can also visit our website at www.ssbny.com.
You may retain Stull, Stull & Brody, or other counsel of your choice, to represent you. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 40 years and has obtained court approval of substantial settlements on numerous occasions. Stull, Stull & Brody maintains offices in New York and Beverly Hills.
Attorney Advertising. Prior Results Do Not Guarantee A Similar Outcome.