San Diego, CA -- (SBWIRE) -- 09/10/2012 -- An investor in shares of Ubiquiti Networks Inc (NASDAQ:UBNT) filed a lawsuit in the U.S. District Court for the Northern District of California against Ubiquiti Networks Inc over alleged securities laws violations in connection with certain allegedly false and misleading statements.
Investors who purchased shares of Ubiquiti Networks Inc (NASDAQ:UBNT) between October 14, 2011 and August 9, 2012 and/or those who acquired Ubiquiti common stock pursuant or traceable to the Company’s October 14, 2011 initial public offering, have certain options and there are strict and short deadlines running. Deadline: November 6, 2012. NASDAQ:UBNT investors should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 – 1554.
According to the complaint the plaintiff alleges on behalf of on behalf of purchasers of Ubiquiti Networks, Inc. (NASDAQ:UBNT) common stock during the period between October 14, 2011 and August 9, 2012 and/or who acquired Ubiquiti common stock pursuant or traceable to the Company’s October 14, 2011 initial public offering, that Ubiquiti Networks Inc (NASDAQ:UBNT) certain of its officers and directors and the underwriters of its IPO violated the Securities Exchange Act of 1934 and the Securities Act of 1933.
Specifically, the plaintiff alleges that between October 14, 2011 and August 9, 2012 and in the Registration Statement and Prospectus issued in connection with the initial public offering (“IPO)” defendants issued allegedly materially false and misleading statements regarding Ubiquiti Networks’ business practices and financial results.
Shares of Ubiquiti Networks Inc (NASDAQ:UBNT) traded on May 1, 2012 as high as $35 per share, but have since then lose substantially in value.
On May 1, 2012, Ubiquiti Networks Inc announced its third quarter fiscal year 2012 financial results.
However, the plaintiff says that defendants allegedly failed to disclose negative trends in Ubiquiti Networks business, including widespread problems associated with counterfeit versions of its AirMax wireless gear being made available to the market.
The plaintiff claims that defendants allegedly knew, but concealed from the investing public the true magnitude of the risks the Company faced from counterfeit goods, the widespread nature and extent of the counterfeit operations and the impact the counterfeit activities would have on the Company’s future operating results, the increased risks to the Company’s operations due to its unique business model, whereby it relied exclusively upon distributors to sell its products to end customers; and that the Company lacked the proper internal controls to prevent its product designs from being stolen and replicated.
Then on August 9, 2012, Ubiquiti Networks Inc reported its fourth quarter fiscal 2012 results. Among other things, Ubiquiti Networks Inc said that the amount of counterfeited goods, combined with the impact it has on its distributor’s inventory and the purchasing patterns of its customers, will impact its business outlook for the next two fiscal quarters.
Shares of Ubiquiti Networks Inc (NASDAQ:UBNT) fell from $15.01 per share on August 9, 2012, to $8.605 per share on August 10, 2012.
On September 7, 2012, NASDAQ:UBNT shares closed at $12.03 per share.
Those who purchased shares of Ubiquiti Networks Inc (NASDAQ:UBNT) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego