SAN DIEGO & ANDOVER, Mass.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Casa Systems, Inc. (NASDAQ: CASA) has filed a class action complaint against the company for alleged violations of the Securities Act of 1933 pursuant to its December 2017 initial public offering ("IPO"). Casa Systems provides customers with software-centric broadband connectivity in North America, Latin America, the Asia-Pacific, Europe, the Middle East, and Africa.
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Casa Systems, Inc. (CASA) Accused of Misleading Investors in IPO
According to the complaint, Casa Systems held its initial public offering in December 2017 offering 6,000,000 common shares at $13 per share. Its registration documents stated that its core CCAP products and new technology initiatives would allow for a compelling market opportunity and touted the fact that these initiatives would prompt Casa Systems to experience continued rapid growth. However, these documents were false and misleading as Casa Systems failed to disclose material information about the state of its customers' spending. In reality, Casa Systems knew its key customers' spending had entered a "digestion" period that curtailed any new product purchases. On August 14, 2018, Casa Systems announced disappointing financial results and cut its revenue guidance for the year by $50 million. On this news, Casa Systems stock declined from $15.60 to $12.08, a drop of almost 23%. Since then, Casa Systems has continued to have disappointing financial results and the stock now trades at just $6.56, a decline of 49% from its IPO price.
Casa Systems, Inc. (CASA) Shareholders Have Legal Options
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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