VMware investors get collective status after claims of faulty accounting

VMware Inc. faces allegations of revenue accounting manipulation, with investors alleging that executives engaged in insider trading while acting on behalf of a shareholder group. The company did not contest the investors’ request for class certification, making this an unusual case in terms of securities litigation.VMware Inc. faces allegations of revenue accounting manipulation, with investors alleging that executives engaged in insider trading while acting on behalf of a shareholder group. The company did not contest the investors’ request for class certification, making this an unusual case in terms of securities litigation. The investors claim that VMware knowingly misrepresented its ability to meet revenue targets for fiscal years 2019 and 2020. Additionally, two executives are accused of profiting from inside information by trading VMware shares before the company’s stock price dropped significantly. Judge Edward J. Davila ruled that the investors could proceed with their lawsuit as a class action, which allows all affected shareholders to participate in the case. This ruling represents a setback for VMware and may result in further legal scrutiny and potential liability for the company.

Investors allege that VMware Inc. manipulated its revenue accounting by allowing executives engaged in insider trading to act on behalf of a group of shareholders, a federal court has ruled.

The cloud computing company did not oppose the investors’ request for class certification, according to an opinion by Judge Edward J. Davila for the U.S. District Court for the Northern District of California. It’s at least the second recent instance of an uncontested class status request, which is unusual in securities cases.

• The investors allege that VMware falsely stated that it would meet revenue expectations for fiscal 2019 and 2020, and that two …