Federal Court Gives Final Approval to $27.5 Million Carbonite Investor Recovery

Main Column Image
June 17, 2024

On May 15, 2024, Judge Leo T. Sorokin of the U.S. District Court for the District of Massachusetts granted final approval of a $27.5 million recovery in a long-running securities class action lawsuit against Carbonite and certain of its officers. 

The case involved allegations that Carbonite and several of its executives touted an “extremely competitive” data backup software product between October 2018 and July 2019. The class, led by the Construction Industry and Laborers’ Joint Pension Trust as the court-appointed lead plaintiff, alleged that the product never worked as intended. In late July 2019, Carbonite pulled the product from the market and announced that its CEO was resigning. The next day, Carbonite’s stock price plummeted over 24%. 

The case was initially dismissed in 2020, but the Pension Trust did not relent, ultimately securing a complete reversal of the dismissal in a precedent-setting decision by the U.S. Court of Appeals for the First Circuit – the first time the judges on that appeals panel ever reversed the dismissal of a securities fraud case. 

Robbins Geller attorneys David A. Rosenfeld, Robert D. Gerson, and Joshua D. Forgy led this litigation on behalf of our client and the class. 

About Robbins Geller

Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex litigation firms, representing plaintiffs in securities fraud, shareholder derivative, antitrust, corporate takeover, and consumer fraud and privacy cases. With 200 lawyers in 10 offices, Robbins Geller is one of the world’s largest plaintiffs’ firms, and the Firm’s attorneys have obtained many of the largest securities, antitrust, and consumer class action recoveries in history.

Over the last decade, our Firm has been ranked #1 on the ISS Securities Class Action Services law firm rankings for six out of the last ten years for securing the most monetary relief for investors. In the last four years, Robbins Geller recovered $6.6 billion for investors in securities-related class action cases – over $2.2 billion more than any other law firm during that time. The Firm secured the largest-ever securities fraud class action settlement – $7.2 billion – in In re Enron Corp. Securities Litigation. 

For media inquiries, please contact media@rgrdlaw.com or call (619) 338-3821. 

Luna v. Carbonite, Inc., No. 1:19-cv-11662 (D. Mass.).

Read More Firm News

Main Menu