FireEye, Inc. 2015-01-29T19:05:00+00:00


Zeldes Haeggquist & Eck, LLP, a shareholder and consumer rights litigation firm has commenced a lawsuit against FireEye, Inc. (“FireEye” or the “Company”) (NASDAQ: FEYE) on behalf of shareholders who purchased shares of common stock directly pursuant to FireEye’s March 7, 2014 Secondary Offering (the “ Secondary Offering”). The shareholders allege FireEye and its top executives and officers made false and misleading statements in the prospectus and registration statement that the Company provided to investors in connection with the Secondary Offering. A copy of the complaint can be found here.

FireEye, Inc., located in Milpitas, California, is a network security company that aims to provide automated threat forensics and dynamic malware protection against advanced cyber threats, such as advanced persistent threats and spear phishing. The company’s main product line is the FireEye Threat Prevention Platform which is intended to identify and block cyber attacks, such as targeted emails with embedded URLs or malicious documents.

On March 7, 2014, FireEye sold 14 million shares of common stock at $82.00 a share. Less than a month after the Secondary Offering, on April 2, 2014, investors learned that FireEye had received an overall rating of “caution” to buyers in comparative group product tests on their breach-detection systems. Then, on May 6, 2014, FireEye announced its first-quarter financial results, and for the second time in two quarters, it revised its full-year guidance downward.

Management now expects a full-year loss of $2.10 to $2.30 per share on revenue of $405 million to $415 million, versus the consensus of a $2.03-per-share loss and revenue of $407 million. On this news, the price of FireEye’s shares declined by over 28%. FireEye’s CEO David Dewalt later appeared on CNBC to apologize for the poor financial results and confront questions over having personally sold FireEye shares when the stock was trading at approximately $80 per share. FireEye stock has lost over half of its value from the Secondary Offering, and now trades under $38 a share.

What You Can Do

If you purchased FireEye shares pursuant to the March 7, 2014 Secondary Offering, you may have legal claims against FireEye’s Officers and Directors. If you wish to discuss this investigation, or have questions about this notice or your legal rights, please contact attorney Amber L. Eck at (619) 342-8000 or via email at