MobileIron, Inc. was sued late last week by shareholders in a proposed class action for allegedly failing to disclose a hacking incident just weeks before its initial public offering (IPO).

The suit, filed on behalf of investors who participated in the IPO, alleges that MobileIron violated the Securities Act when it hid a hacking incident before the IPO, which caused the share price to drop dramatically following the disclosure of the incident.

The MobileIron product was designed to assist companies with managing and securing mobile devices and applications. The security incident was reported in the media the week following the IPO, which indicated that the software’s vulnerability allowed the perpetrator to send emails that appeared to come from MobileIron and could completely wipe employees’ mobile devices.
The stock price tanked following the news reports, which led to the lawsuit.