In re Splunk Inc. Shareholder Derivative Litigation, Master File No.: CGC-21-589794 (Cal. Super. Ct. Mar. 1, 2021)

In the Splunk consolidated shareholder derivative action, plaintiffs filed a shareholder derivative complaint in the Superior Court of the State of California, County of San Francisco, on behalf of nominal defendant Splunk, Inc. (“Splunk” or the “Company”) against certain current and former directors and officers of Splunk (the “Individual Defendants”).  The action generally alleges that the Individual Defendants breached their fiduciary duties by causing and/or authorizing Splunk to make multiple false and misleading statements to the investing public (and failing to correct them after they were made).  Specifically, these statements misrepresented that Splunk: (i) was continuing to invest in marketing when, in fact, it had suspended it investments in marketing; (ii) was continuing to hire new sales personnel when, in fact, it had frozen the hiring of new employees; and (iii) was not laying off employees when, in fact, it had conducted layoffs, including entire business units of the Company.  The action is currently stayed pending resolution of a related securities class action.