SAN DIEGO & NEW YORK--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Ubiquiti Networks, Inc. (NasdaqGS: UBNT) filed a class action complaint against the company's officers and directors for alleged violations of the Securities Exchange Act of 1934 between May 9, 2013 and February 20, 2018. Ubiquiti develops networking technology for service providers, enterprises, and consumers worldwide.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/ubiquiti-networks-inc-september-2017
Ubiquiti Accused of Grossly Exaggerating Size of Its User Base
According to the complaint, Ubiquiti drives brand awareness through the company's user community, known as the "Ubiquiti Community." Ubiquiti officials allegedly exaggerated the size of the Ubiquiti Community by approximately 3,290,000 users in the company's financial statements and press releases. On September 18, 2017, Citron Research published a report detailing a series of "alarming red flags" indicating that Ubiquiti engaged in corporate fraud and misrepresented the size of the Ubiquiti Community and levels of accounts receivable. Citron's exposure comes just after the sale of one million shares of Ubiquiti stock by Ubiquiti's Chairman and Chief Executive Officer, Robert J. Pera. On February 20, 2018, Ubiquiti announced that the Securities and Exchange Commission issued subpoenas to the company requesting information about metrics relating to the Ubiquiti Community, accounting practices, and financial information, among other things. On this news, Ubiquiti's stock fell more than 25%, closing at $55.28 per share on February 20, 2018.
Ubiquiti 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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