Nutanix, Investors Get First Nod for $71 Million Deal Over Sales

Nutanix Inc. and investors convinced a federal judge to preliminarily approve their $71 million deal to settle claims that the cloud computing company made false statements about its pipeline for new sales and its sales force’s productivity.

The terms, which represent about 15% of the investors’ estimate of damages, are sufficiently fair, reasonable, and adequate, Judge William H. Orrick said May 19 for the US District Court for the Northern District of California. Orrick required some changes to the notice form to be sent to class members.

Nutanix has faced other shareholder litigation as well. A derivative suit based on ...