Levi & Korsinsky, LLP announces the commencement of a class action lawsuit in the Superior Court of the State of California, County of San Mateo, on behalf of shareholders of Ooma, Inc. (NYSE: OOMA) who purchased shares pursuant and/or traceable to the Registration Statement and Prospectus issued in connection with the Company’s Initial Public Offering on July 17, 2015.
The complaint alleges that Ooma failed to disclose material information in its Registration Statement, including: (a) that certain exceptionally large prior fiscal year sales to its largest outside reseller were not recurring or being replaced in the fiscal year leading into the IPO; (b) that the company’s customer churn rate, or rate of customer terminations or failures to renew, had increased significantly as of the IPO as a result of customers having endured eight-hour service outages in April and May 2015; and (c) that technological difficulties in the company’s lead generation business were causing leads to get lost in the internet before reaching their intended targets, thus negatively impacting the company’s business.
On July 17, 2015, Ooma successfully raised $65 million in its IPO. Ooma’s stock now trades at approximately half the IPO price of $13 per share, and recently closed at $6.49 per share on January 15, 2016.
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