A lawsuit is pending for investors in Ubiquiti Networks Inc (NASDAQ:UBNT) shares over alleged securities laws violations by Ubiquiti Networks Inc and NASDAQ:UBNT stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 02/08/2017 -- The Shareholders Foundation announces that a lawsuit is pending in the U.S. District Court for the Northern District of California for certain investors in Ubiquiti Networks Inc (NASDAQ:UBNT) shares over alleged violations of securities laws by Ubiquiti Networks Inc.
Investors who purchased shares of Ubiquiti Networks Inc (NASDAQ:UBNT) and currently hold any of those NASDAQ:UBNT shares have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call 858-779-1554.
San Jose, CA based Ubiquiti Networks Inc develops performance networking technology for service providers and enterprises. Ubiquiti Networks Inc went public in October 2011. At least 7.038 million shares of Ubiquiti Networks Inc common stock were sold to the public at $15 per share, raising $105.6 million in gross proceeds for the Company and the selling shareholders.
On May 1, 2012, after announcing disappointing third quarter fiscal year 2012 financial results, the Company acknowledged that a former distributor of Ubiquiti Networks Inc's had stolen source codes and proprietary designs for the Company's popular and profitable AirMax line of products and was engaged in a scheme to manufacture and distribute counterfeit Ubiquiti Networks Inc products in direct competition with the Company.
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.
On September 7, 2012, a lawsuit was filed in the U.S. District Court for the Northern District of California against Ubiquiti Networks Inc over alleged securities laws violations. The plaintiff alleged 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 Inc's business practices and financial results.
The plaintiff claimed that defendants allegedly failed to disclose negative trends in Ubiquiti Networks Inc business, including widespread problems associated with counterfeit versions of its AirMax wireless gear being made available to the market. The plaintiff alleged 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. On January 29, 2013, a consolidated and amended complaint was filed.
On March 26, 2014, the court granted the Motions to Dismiss on behalf of the various defendants and the plaintiff filed a notice of appeal.
On October 24, 2016, the Ninth Circuit affirmed in part and reversed in part the decision of the District Court.
On January 30, 2017, another amended complaint was filed in the U.S. District Court for the Northern District of California.
Those who purchased shares of Ubiquiti Networks Inc have certain options and should contact the Shareholders Foundation.
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