b'false or misleading, explaining that the allegationsits Server Backup VM Edition (VME) for managed and documents referenced therein demonstrated thatservices providers (MSPs). The new service was customers were not forced to transition and defendantsdesigned to allow MSPs to protect their virtual data had no duty to disclose the aggressive, abrasive, andboth locally and in their own cloud. Carbonite called aggravating techniques allegedly employed by thethe launch the culmination of one of our largest company or customer reactions to those techniques.cross-functional efforts, led by our exceptional The court further held that allegations the defendantsengineering organization, and projected that it would paid close attention to risk of customer churn fromadd meaningfully to Carbonites revenue for fiscal transitions to annual payment plans and conversionyear 2019.tactics employed to manage those risks did notDuring a November 1, 2018 investor call, Carbonites plead scienter, noting plaintiffs failure to identifyCEO told analysts that VME significantly improves any statement from the defendants describing such[Carbonites] performance for backing up virtual conversion tactics with any specificity or that theyenvironments and makes us extremely competitive participated in any such discussions. The court rejectedgoing after that market. At an investor conference plaintiffs allegations seeking to imply that defendantson November 15, 2018, Carbonites CFO stated that must have made statements with scienter by merewhile Carbonite had not been particularly strong in virtue of their positions in the company and receipt ofthe virtual-environment security market before, I think data. The court also rejected plaintiffs reliance on thewe have completely overhauled the product and we core operations doctrine, explaining Plaintiffs havehave put out something that we think is just completely alleged that the transition was important but have notcompetitive and just a super strong product. The alleged that it was central to the Companys survivalCEO called VME a really important product for us on (nor could they credibly do so given their allegation thata December 6, 2018 conference call, stating he thought the transition was completely bungled, and the fact thatit would help us address a pretty big segment of the the Company nonetheless survived). market while Carbonites CEO stated in a press release on February 7, 2019 that Carbonite had significantly Luna v. Carbonite, Inc., Case No. 1:19- strengthened our product platform without naming cv-11662, 2020 WL 6205786 (D. Mass.VME specifically. Oct. 22, 2020)On May 2, 2019, Carbonite reported Discontinuance Of New Service higher-than-forecasted financial results for the first quarter of 2019. On an investor call that day, Carbonites Carbonite, Inc. (Carbonite) is a software companyCEO did not reference VME, but stated that Carbonite that provides cloud-based backup services. Inhad the right product portfolio to serve the broader October 2018, Carbonite announced the launch of set of businessesand we have the incredible product, ease of use that businesses have come to know and 90'