NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP gives notice of the revised lead plaintiff deadline in the securities lawsuit pending against A10 Networks, Inc. (NYSE:ATEN) (“A10 Networks” or the “Company”) and certain of its officers (“Defendants”). The caption for the action is: Shah v. A10 Networks, Inc. et al., Case No. 3:18-cv-01772-VC, pending in the United States District Court for the Northern District of California before the Honorable Vince Chhabria, U.S.D.J.
The operative complaint, filed on March 22, 2018 on behalf of a proposed class consisting of persons and entities that acquired A10 Networks securities between February 9, 2016 and January 30, 2018, inclusive, alleges that Defendants violated federal securities laws. Specifically, the complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) A10 Networks had issues with its internal controls that required an Audit Committee investigation; (2) A10 Networks’ revenues since the fourth quarter of 2015 were false due to improper revenue recognition which prompted an investigation by the Company’s Audit Committee; and (3) as a result, Defendants’ public statements were materially false and misleading at all relevant times. The initial deadline to move for lead plaintiff was May 21, 2018, and on June 29, 2018, the Court denied those motions without prejudice and reopened the lead plaintiff process, with a revised lead plaintiff deadline of July 27, 2018.
On January 16, 2018, A10 Networks announced that it expected fourth quarter 2017 revenue to be between $55.5 million and $56 million, which was below its prior guidance of $64 million to $67 million. Following this news, the stock price of A10 Networks fell $0.99 per share, or 13.5%, to close at $6.32 on January 17, 2018.
On January 30, 2018, A10 Networks disclosed that the Company’s Audit Committee was investigating the Company’s revenue recognition practices from the fourth quarter of 2015 through the fourth quarter of 2017, inclusive, and that, in the fourth quarter of 2017, the Company determined that a mid-level employee within its finance department had violated the Company’s Insider Trading Policy and Code of Conduct. Following these disclosures, the stock price of A10 Networks fell $0.86 per share, or 12.3%, to close at $6.13 per share on January 31, 2018.
If you purchased or otherwise acquired A10 securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars, and the firm’s achievements and quality of service have been chronicled in numerous published decisions. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
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