Amid avalanche of lawsuits, Violin Memory has new CEO

Violin Memory (s vmem), the flash storage pioneer that has been in a downward spiral since an abysmal initial public offering in September, has a new CEO. The company announced on Monday its board of directors fired Don Basile and replaced him with interm CEO¬†Howard A. Bain III, chairman of the company’s board.¬†Rumors of Basile’s termination have been swirling since last week.

Shareholders are upset about his luxurious compensation package (nearly $19 million in salary, bonus, stock and options in 2013) despite the company’s slow-growing revenue. The company is also facing a spate of class-action lawsuits from shareholders based on allegations that it misrepresented future revenue and past R&D investments on its S-1 filing leading up to the IPO. Last week, Business Insider published a fairly comprehensive rundown of the company’s woes, including the resignation of CTO Jonathan Goldrick.

The company’s stock is rising after news of Basile’s termination, but it’s still at less than $3 (as of 9am PT) — less than one-third of its asking price of $9 a share on Sept. 26. The company’s problems don’t appear to be tainting the market’s appetite for flash-storage stock, however: share of Nimble Storage (s nmbl) (which offers arrays combining flash and disk, as opposed to Violin’s high-performance-based flash approach) are up more than 13 percent, to nearly $36, after its IPO on Friday.

According to the press release announcing Basile’s termination, Violin “has initiated a search process and retained an executive search firm to identify a permanent CEO.”