SAN DIEGO & NEW YORK--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces a purchaser of Ubiquiti Networks, Inc. (NASDAQ: UBNT) has filed a complaint against the company's officers and directors for breaches of fiduciary duties, unjust enrichment, and waste. Ubiquiti develops technology platforms for hi-capacity distributed Internet access, unified information technology, and next-generation consumer electronics for home and personal use.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/ubiquiti-networks-inc-mar-2018
Ubiquiti Accused of Abysmal Corporate Governance Structure
According to the complaint, Ubiquiti failed to maintain internal controls when it shipped its products to Iran despite a United States ban on such sales, which ultimately resulted in a violation fine. Moreover, the Board failed to take responsibility to fix Ubiquiti’s poor corporate governance. The continued lack of sufficient controls became glaringly obvious when Ubiquiti failed to realize that it had been defrauded of $46.7 million, or 10% of its cash position, until the FBI notified the company of the fraudulent transfers. These and other issues led the U.S. Securities and Exchange Commission to subpoena documents from the company and certain officers in February 2019. Upon this news, the company's stock declined significantly, triggering a federal securities fraud class action that can cost Ubiquiti millions to defend, not to mention the millions in damages that the company could owe to shareholders if found liable for the alleged wrongdoing.
Ubiquiti Shareholders Have Legal Options
If you would like more information about your rights and potential remedies, 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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