VMware Investors Get Class Status on Claims of Faulty Accounting

Investor claims that VMware Inc. manipulated its revenue accounting as executives engaged in insider trading can proceed on behalf of a class of shareholders, a federal court ruled.

The cloud computing company didn’t oppose the investors’ request for class certification, according to Judge Edward J. Davila’s opinion for the US District Court for the Northern District of California. That’s at least the second recent instance of a non-opposed class status request, which is unusual in securities cases.

• The investors allege that VMware misleadingly indicated that it was meeting its revenue expectations for fiscal years 2019 and 2020, and that two ...