Class Action Lawsuit Filed on Behalf of Shareholders and Investors of Ubiquiti Networks, Inc. Who Purchased UBNT Common Stock Between May 9, 2013 and February 20, 2018, Both Dates Inclusive
Kehoe Law Firm, P.C. is investigating securities claims on behalf of shareholders of Ubiquiti Networks and reports that a class action lawsuit has been filed on behalf of shareholders who purchased the securities of Ubiquiti Networks, Inc. (NASDAQ: UBNT) between May 9, 2013 and February 20, 2018, both dates inclusive (the “Class Period”). The class action lawsuit, which was filed in United States District Court, Southern District of New York, seeks to recover damages for investors of Ubiquiti Networks under the federal securities laws.
Ubiquiti shareholders who wish to serve as lead plaintiff MUST move the Court to seek appointment as lead plaintiff no later than April 23, 2018.
During the class period, the Ubiquiti defendants, according to the class action lawsuit, made materially false and/or misleading statements and/or failed to disclose that that the size of Ubiquiti’s purported user community was drastically overstated; Ubiquiti had exaggerated its publicly reported accounts receivable; and as a result, Ubiquiti’s publicly-disseminated financial statements were materially false and misleading. When the true details entered the market, the class action lawsuit claims that UBNT investors suffered damages.
According to the UBNT class action complaint:
Ubiquiti Networks is a company whith “. . . develops technology platforms for high-capacity distributed Internet access, unified information technology, and next-generation consumer electronics for home and personal use.” [Ubiquiti Networks] 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.’ [Ubiquiti Networks] calls this user community the ‘Ubiquiti Community.’”
Information previously disclosed to the market revealed that the size of the “Ubiquiti Community” was grossly exaggerated, and that the Company has engaged in fraudulent accounting practices and financial reporting.
On February 20, 2018, Ubiquiti filed a [F]orm 8-K with the Securities and Exchange Commission that said, in material part:
On February 13, 2018, the Securities and Exchange Commission . . . issued subpoenas to Ubiquiti Networks, Inc. . . . and certain of [Ubiquiti’s] officers requesting documents and information relating to a range of topics, including metrics relating to the Ubiquiti Community, accounting practices, financial information, auditors, international trade practices, and relationships with distributors and various other third parties.
On the news of the SEC subpoenas, Ubiquiti’s share price fell more than 25 percent, from $74.04 at the close of the prior trading day, to close at $55.28 on February 20, 2018. (Emphasis added)
The class action complaint also stated that
[p]rior to disclosure of the SEC’s . . . subpoenas, there was a partial corrective disclosure on September 18, 2017. On that day Citron Research . . . issued a report entitled “Cintron Exposes Ubiquiti Networks,” . . . in which Citron [Research] detailed a series of “alarming red flags,” indicating that [Ubiquiti Networks] had been deceiving investors and was engaged in “corporate fraud,” including, among other things, that [Ubiquiti Networks] had been deceiving investors and was engaged in “corporate fraud,” including, among other things, that [Ubiquiti] had misrepresented the size of its purported “Ubiquiti Community”, as well as its levels of accounts receivable, among other things.
Ubiquiti Networks, Inc. Shareholders and Investors
If you purchased, or otherwise acquired, UBNT stock shares and have questions or concerns about the securities investigation or your potential legal rights, please contact John A. Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], complete the form above on the right or e-mail [email protected].
PLEASE NOTE: NO CLASS HAS BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN AN ATTORNEY OF YOUR CHOICE. YOU MAY ALSO REMAIN AN ABSENT CLASS MEMBER AND NOT TAKE ANY ACTION AT THIS TIME.