SAN FRANCISCO--(BUSINESS WIRE)--Schubert Jonckheer & Kolbe LLP is investigating potential shareholder derivative claims on behalf of Ixia, Inc. (NASDAQ: XXIA). The investigation concerns whether certain of Ixia’s officers and directors may have breached their fiduciary duties to Ixia by causing the Company’s financial statements and filings with the United States Securities and Exchange Commission (“SEC”) to be materially false and misleading, as well as by engaging in insider trading.
On January 14, 2013, Ixia increased its revenue guidance range for the fourth quarter of 2012, announcing that it expected revenue to be in the range of $123.5 million to $124.5 million, above its previously stated guidance range of $118 million to $122 million.
On November 14, 2013, The Wall Street Journal reported that, as Ixia’s stock price rose on this news, Ixia’s officers and directors, including Victor Alston, the former President, CEO and Director, sold more than $18.4 million of Ixia stock at an average price of $20.96 a share. According to The Wall Street Journal, the amount of stock sold by Ixia’s insiders during this time period exceeded the amount they had sold during the prior seven year period.
On April 4, 2013, shares of Ixia fell $1.94, or more than nine percent, from its closing price on April 5, 2013, after the Company announced restated financial results for 2010, 2011 and the first three quarters of 2012. Shortly thereafter on April 11, 2013, Ixia announced that it expected revenues in the first quarter of 2013 to be in the range of $121 million to $123 million, below its prior revenue guidance of $125 million to $127 million.
On October 24, 2013 Ixia announced that Victor Alston had resigned as its President, CEO and a member of its board of directors, following a determination that Alston had misstated his academic credentials, age and early employment history. In response to this news, Ixia share price fell $1.32 or more than 7%, trading at $14.40 in intraday trading on October 25, 2013.
On November 13, 2013, Ixia filed a notification of inability to timely file a Form 10-Q with the U.S. Securities and Exchange Commission, noting that as a result of Alston’s resignation, Ixia’s Audit Committee was reviewing and performing additional procedures to ensure the accuracy of its financial results. In response to this news, Ixia shares fell another 5.74%, closing at $13.94 on November 14, 2013.
On November 21, 2013, The NASDAQ Stock Market LLC ("Nasdaq") notified Ixia that, as a result of its failure to file its 10-Q on time, Ixia no longer complies with the Nasdaq Listing Rules and specifically with Nasdaq Listing Rule 5250(c)(1).
If you are a current holder of Ixia shares or are aware of any facts relating to this investigation, please contact Miranda Kolbe, Esq. at (415) 788-4220.
Schubert Jonckheer & Kolbe LLP represents investors in securities class actions and shareholder derivative litigation.
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