An investigation for investors in NASDAQ:EXTR shares concerning potential breaches of fiduciary duties by certain directors of Extreme Networks was announced.
Investors who are current long term investors in Extreme Networks, Inc (NASDAQ:EXTR) shares, have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 – 1554.
The investigation by a law firm for current long term investors in NASDAQ:EXTR stocks follows a lawsuit filed against Extreme Networks over alleged securities laws violations. The investigation on behalf of current long term investors in NASDAQ:EXTR stocks, concerns whether certain Extreme Networks directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for the Northern District of California the plaintiff alleges that the defendants issued allegedly false and/or misleading statements and/or allegedly omitted adverse information concerning Extreme Networks’ current financial condition and outlook for fiscal 2015, including, among other things, that Extreme Networks’ revenue growth depended on the successful integration of Enterasys Networks, Inc., which Extreme Networks had acquired in 2013 but had not successfully integrated, which materially impaired the Company’s ability to address persisting sales problems.
In addition, the plaintiff alleges that Extreme Networks had begun an alliance with Lenovo, but between November 4, 2013 and April 9, 2015 defendants did not have sufficient visibility into Lenovo’s server business plans to support the Company’s quarterly and fiscal 2015 financial forecasts.
The plaintiff says that as a result of these misrepresentations and/or omissions, Extreme Networks’ stock traded at artificially inflated prices between November 4, 2013 and April 9, 2015, reaching a high of $8.14 per share in intraday trading on January 23, 2014.
On April 9, 2015, after the markets closed, Extreme Networks, Inc announced that it would miss guidance for the third quarter of 2015, reporting revenue of $118-$120 million and earnings per share of ($0.09)-($0.07), significantly below prior guidance of $130-$140 million and ($0.03)-$0.02, respectively. Extreme Networks, Inc also announced that trading in its shares had been halted and that Jeff White, the Company’s Chief Revenue Officer, who had been hired only six months earlier to manage the integration of the Extreme Networks, Inc and Enterasys salesforces, was “no longer with the Company.”
Those who purchased NASDAQ:EXTR shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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