SAN DIEGO & MILPITAS, Calif.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that investors filed a class action complaint against Aerohive Networks, Inc. (NYSE: HIVE). The complaint is brought on behalf of all purchasers of Aerohive securities between November 1, 2017 and January 16, 2018, for alleged violations of the Securities Exchange Act of 1934 by Aerohive's officers and directors. Aerohive, together with its subsidiaries, designs and develops cloud networking and enterprise Wi-Fi solutions in the Americas, Europe, the Middle East and Africa, and the Asia Pacific.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/aerohive-networks-inc-feb-2018/
Aerohive Accused of Hiding Sales Execution Problems
According to the complaint, on November 1, 2017, Aerohive held a conference call with investors and analysts, during which Aerohive officials touted the company's "significant sales efficiency" and "improved sales productivity" while predicting revenue in fourth quarter 2017 to be between $40 million and $42 million. Aerohive officials did not reveal that there were underlying sales execution issues—including underperforming team members and orders coming in below forecast—which would cause Aerohive to overstate guidance for the fourth quarter 2017. On January 16, 2018, Aerohive disclosed that it expected revenue for the fourth quarter 2017 to be only $37 million, citing underperforming sales team members. Following the disappointing news, Aerohive's stock fell nearly 29%, to close at $4.07 per share on January 17, 2018. Finally, in a conference call on February 8, 2018, Aerohive admitted that forecasting accuracy is a "pretty serious execution problem" for the company, and revealed that it employed overoptimistic assessments of deals in the pipeline because it failed to adequately assess the realistic close date and the probability of close inside the quarterly window.
Aerohive Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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