[October 02, 2017] |
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Robbins Arroyo LLP: Ubiquiti Networks, Inc. (UBNT) Misled Shareholders According to a Recently Filed Class Action
Shareholder rights law firm Robbins Arroyo LLP announces
that a class action complaint was filed against Ubiquiti (News - Alert) Networks, Inc.
(NasdaqGS: UBNT). The complaint is brought on behalf of all purchasers
of Ubiquiti securities between September 28, 2012 and September 18,
2017, for alleged violations of the Securities Exchange Act of 1934 by
Ubiquiti's officers and directors. 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
biquiti Accused of 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," where
customers can interface directly with R&D, marketing, and support.
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. The report
further asserted that Ubiquiti's big markets are money laundering havens
and that the company's cash balances generate far lower interest income
as a percentage than other tech companies. Citron's exposure closely
followed the sale of one million shares of Ubiquiti stock by Ubiquiti's
Chairman and Chief Executive Officer, Robert J. Pera. On this news,
Ubiquiti's stock fell nearly 8% to close at $50.62 per share on
September 18, 2017.
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, [email protected],
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.
Attorney Advertising. Past results do not guarantee a similar outcome.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171002006605/en/
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