Aerohive Networks, Inc. Class Action Filed on Behalf of Investors Who Purchased, or Otherwise Acquired, Shares of Aerohive Between November 1, 2017 and January 16, 2018
Aerohive Networks, Inc. (NYSE:HIVE)
On January 19, 2018, a class action lawsuit was filed against Aerohive Networks, Inc. (McGovney v. Aerohive Networks, Inc., et al, No. 18-00435) in United States District Court, Northern District of California, on behalf of a class consisting of all persons and entities, other than the named Defendants, who purchased, or otherwise acquired, the securities of Aerohive Networks between November 1, 2017 and January 16, 2018, both dates inclusive.
The class action lawsuit seeks to recover compensable damages caused by the Aerohive Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint alleges that the Aerohive Defendants made materially false and/or misleading statements by misrepresenting and failing to disclose adverse facts pertaining to Aerohive’s business, operational and financial results known to the Aerohive Defendants or recklessly disregarded by them.
According to the class action complaint, on November 1, 2017, during Aerohive’s Q3 2017 conference call, Aerohive’s CFO, John Ritchie, stated that “[w]e are currently expecting Q4 revenue in the range of $40 million to $42 million,” and that “[w]e realized significant sales efficiency with our non-GAAP sales and marketing costs.”
On January 16, 2018, according to the class action complaint, Aerohive announced that it “expects net revenue for the fourth quarter to be approximately $37 million, which is below [Aerohive’s] previously stated guidance of $40 million to $42 million.” Aerohive’s President and CEO, David Flynn, stated that Aerohive “delivered non-GAAP operating profitability in [Aerohive’s] fourth quarter, but were disappointed that [Aerohive’s] revenue was below [its] prior guidance.” The CEO further stated, “Following the change in [Aerohive’s] leadership at the end of [its] third quarter, [Aerohive] uncovered underlying sales execution issues which became fully apparent in the last month of the fourth quarter.”
According to the class action complaint, on this news, Aerohive shareholders were damaged when Aerohive’s share price fell $1.63 per share, or over 29%, from Aerohive’s previous closing stock price to close at $4.07 per share on January 17, 2018.
Aerohive’s Stock Closing Price on January 17, 2018
Aerohive Networks, Inc. Investors
If you purchased, or otherwise acquired, shares of Aerohive Networks, Inc. stock between November 1, 2017 and January 16, 2018 and have questions or concerns about your potential legal rights or claims, please contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], complete the form above on the right or e-mail [email protected].