HARTFORD, Conn., Nov. 1, 2007 LAWFUEL – The Legal Newswire — The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Western District of Washington on behalf of all persons or entities who acquired the common stock of Isilon Systems, Inc. (“Isilon” or the “Company”) (Nasdaq:ISLN) pursuant and/or traceable to the Company’s Registration Statement and Prospectus (collectively, the “Registration Statement”) issued in connection with its December 14, 2006 initial public offering (“IPO”) through October 3, 2007, inclusive (the “Class Period”).
The Complaint charges that Isilon, and certain of its officers and directors violated federal securities laws. Isilon completed its IPO of
8.9 million shares at $13.00 per share for net proceeds of approximately $105.7 million. According to the complaint, the Registration Statement failed to disclose the following: (i) the Company would not be able to reach profitability by the second half of 2007; (ii) Isilon’s clustered storage solutions did not provide a competitively differentiated business model which would enable the Company to effectively compete against the dominant players in the traditional storage market; (iii) the Company’s past results were not indicative of its future operations, its ability to continue to sustain quarter over quarter revenue growth, and its ability to manage its cost structure; and (iv) despite being able to grow and significantly diversify its overall customer base, the Company would remain highly dependent upon its largest customers, such as the Eastman Kodak Company.
On October 3, 2007, after the market closed, Isilon announced disappointing preliminary results for its third quarter 2007. On this news, Isilon’s stock price collapsed from $7 per share on October 3,
2007 to close at $5.66 per share on October 4, 2007.
If you are a member of the class, you may, no later than December 31, 2007, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard P.C. has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard P.C. toll-free at
(800) 797-5499, or by e-mail at [email protected], or visit our website: