Ubiquiti Networks, Inc. (Nasdaq: UBNT)
A class action has been commenced on behalf of purchasers of Ubiquiti Networks, Inc. (Nasdaq: UBNT) common stock between September 28, 2012 and September 18, 2017 (the “Class Period”).
The complaint charges Ubiquiti and certain of its officers with violations of the Securities Exchange Act of 1934. Ubiquiti develops technology platforms for high-capacity distributed Internet access, unified information technology and next-generation consumer electronics for home and personal use. Ubiquiti does not employ a traditional sales force. Instead it purports to “drive brand awareness largely through the company’s user community where customers can interface directly with R&D, marketing, and support.” The Company calls this user community the “Ubiquiti Community.”
The complaint alleges that throughout the Class Period, defendants made false and misleading statements and/or failed to disclose material adverse facts about the Company's business and prospects, including that defendants had drastically overstated the size of the Ubiquiti Community and exaggerated the Company’s publicly reported accounts receivable. As a result of these false statements and/or omissions, Ubiquiti stock traded at artificially inflated prices of more than $65 per share during the Class Period. On August 28, 2017, while the Company’s stock price was artificially inflated, Ubiquiti’s Chairman and CEO, Robert J. Pera, sold 1 million shares of his Ubiquiti stock at $61.22 per shares for proceeds of more than $61 million.
Then on September 18, 2017, Citron Research issued a report entitled "Citron Exposes Ubiquiti Networks," in which Citron detailed a series of "alarming red flags" indicating that the Company had been deceiving investors and was engaged in "corporate fraud," including, among other things, that the Company had exaggerated the size of its purported "Ubiquiti Community" along with its levels of accounts receivable. On this news, Ubiquiti's share price fell nearly 8% to close at $50.62 per share on September 18, 2017.
If you are a current shareholder and purchased stock between September 28, 2012 and September 18, 2017, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.
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