SOURCE: Kessler Topaz Meltzer & Check, LLP

March 14, 2016 15:44 ET

Hortonworks, Inc. Shareholder Alert: Kessler Topaz Meltzer & Check, LLP Announces Shareholder Class Action Against Hortonworks, Inc. -- HDP

RADNOR, PA--(Marketwired - March 14, 2016) -  The law firm of Kessler Topaz Meltzer & Check, LLP announces that a shareholder class action lawsuit has been filed in The United States District Court for the Northern District of California against Hortonworks, Inc. (NASDAQ: HDP) ("Hortonworks" or the "Company") on behalf of purchasers of the Company's securities between November 4, 2015 and January 15, 2016, inclusive (the "Class Period").

Hortonworks focuses on the development, distribution, and support of the Hadoop open source project in the United States and internationally. 

The shareholder class action complaint alleges that Hortonworks and certain of its executive officers made a series of false and misleading statements, and failed to disclose material adverse facts, to investors regarding the Company's business, operations, cash position, prospects, and internal controls. As detailed in the complaint, in November 2015 the defendants allegedly: (i) misrepresented that Hortonworks had sufficient cash and cash equivalents to fund 12 months of working capital and capital expenditure needs; (ii) failed to disclose that Hortonworks in actuality lacked adequate cash to meet those working capital and capital expenditure requirements over that period of time; (iii) failed to disclose that, as a result, defendants were contemplating a significant offering to fund its operations; and (iv) as a result of the foregoing, defendants' public statements were materially false and misleading at all relevant times.

On Friday, January 15, 2016, post-market, Hortonworks announced that it had retained Goldman Sachs to raise $100 million in a secondary stock offering. Analysts expressed surprise, with one analyst stating: "We believe it will be incumbent on HDP during its roadshow to show why this offering, announced in this way, at this time, should not be interpreted as evidence of serious difficulty." On this news, shares of Hortonworks' common stock fell $6.13, or 37 percent, to close the following trading day at $10.44 per share.

Hortonworks shareholders who purchased their securities during the Class Period (November 4, 2015 through January 15, 2016) may, no later than April 29, 2016, petition the Court to be appointed as a lead plaintiff representative of the class. For additional information please visit https://www.ktmc.com/new-cases/hortonworks-inc.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check (Darren J. Check, Esq., D. Seamus Kaskela, Esq. or Adrienne O. Bell, Esq.) at (888) 299-7706 or (610) 667-7706, or via e-mail at info@ktmc.com 

A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Members of the purported class may petition the Court to be appointed as a lead plaintiff through Kessler Topaz Meltzer & Check or other counsel, or may choose to do nothing and remain an absent class member. In order to be appointed as a lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class in the action. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff. 

Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com.

Contact Information

  • CONTACT:
    Kessler Topaz Meltzer & Check, LLP
    Darren J. Check, Esq.
    D. Seamus Kaskela, Esq.
    Adrienne O. Bell, Esq.
    280 King of Prussia Road
    Radnor, PA 19087
    (888) 299-7706
    (610) 667-7706
    Email contact