Gainey McKenna & Egleston Announces a Class Action Lawsuit Has Been Filed Against Hortonworks, Inc. (HDP)

NEW YORK, March 04, 2016 -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Hortonworks, Inc. (“Hortonworks” or the “Company”) (Nasdaq:HDP) in the United States District Court for the Northern District of California on behalf of a class consisting of all persons or entities who purchased Hortonworks securities between November 4, 2015 and January 15, 2016, inclusive (the “Class Period”).  This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).

The Complaint alleges that Defendants made materially false and misleading statements regarding the Company’s business, operations, cash position, prospects, and internal controls.  Specifically, in November 2015, Defendants: (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 January 15, 2016, Hortonworks announced it had retained Goldman Sachs to raise $100 million in a secondary offering.  Analysts expressed surprise, with one 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, Hortonworks’s stock fell $6.13, or nearly 37%, to close at $10.44 on January 19, 2016, the next trading day.

If you wish to serve as lead plaintiff, you must move the Court no later than April 29, 2016.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].

Please visit our website at http://www.gme-law.com for more information about the firm.