Science & Technology
Tue, September 11, 2012
SAN DIEGO--([ BUSINESS WIRE ])--[ Robbins Geller Rudman & Dowd LLP ] (aRobbins Gellera) ([ http://www.rgrdlaw.com/cases/ubiquiti/ ]) today announced that a class action has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of Ubiquiti Networks, Inc. (aUbiquitia) (NASDAQ:UBNT) common stock during the period between October 14, 2011 and August 9, 2012 (the aClass Perioda), and/or who acquired Ubiquiti common stock pursuant or traceable to the Companyas October 14, 2011 initial public offering (aIPOa).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffas counsel, [ Darren Robbins ] of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at [ djr@rgrdlaw.com ]. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at [ http://www.rgrdlaw.com/cases/ubiquiti/ ]. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Ubiquiti, certain of its officers and directors and the underwriters of its IPO with violations of the Securities Exchange Act of 1934 and the Securities Act of 1933. Ubiquiti designs, manufactures and sells broadband wireless solutions worldwide.
On or about October 14, 2011, Ubiquiti filed its Prospectus for the IPO, which forms part of the Registration Statement and which became effective on October 13, 2011. At least 7.038 million shares of Ubiquiti common stock were sold to the public at $15 per share, raising $105.6 million in gross proceeds for the Company and the selling shareholders.
The complaint alleges that during the Class Period and in the Registration Statement and Prospectus issued in connection with the IPO, defendants issued materially false and misleading statements regarding the Companyas business practices and financial results. Specifically, defendants failed to disclose negative trends in Ubiquitias business, including widespread problems associated with counterfeit versions of its AirMax wireless gear being made available to the market. As a result of defendantsa false statements, Ubiquiti stock traded at artificially inflated prices during the Class Period, reaching a high of $35 per share on May 1, 2012.
On May 1, 2012, after announcing disappointing third quarter fiscal year 2012 financial results, the Company acknowledged that a former distributor of Ubiquitias had stolen source codes and proprietary designs for the Companyas popular and profitable AirMax line of products and was engaged in a scheme to manufacture and distribute counterfeit Ubiquiti products in direct competition with the Company. On this news, Ubiquiti stock declined $6.10 per share to close at $28.90 per share on May 2, 2012. Thereafter, on August 9, 2012, Ubiquiti announced its fourth quarter fiscal 2012 financial results and announced disappointing guidance for the first quarter of fiscal 2013, admitting that the distribution of the unauthorized copies of its AirMax products was more widespread than previously disclosed and would have a detrimental impact on the Companyas future results. As a result of this news, Ubiquiti stock declined $6.30 per share to close at $8.71 per share on August 10, 2012, a one-day decline of nearly 42%.
According to the complaint, defendants knew, but concealed from the investing public: (a) the true magnitude of the risks the Company faced from counterfeit goods; (b) the widespread nature and extent of the counterfeit operations and the impact the counterfeit activities would have on the Companyas future operating results; (c) the increased risks to the Companyas operations due to its unique business model, whereby it relied exclusively upon distributors to sell its products to end customers; and (d) that the Company lacked the proper internal controls to prevent its product designs from being stolen and replicated.
Plaintiff seeks to recover damages on behalf of all purchasers of Ubiquiti common stock during the Class Period and/or who acquired Ubiquiti common stock pursuant or traceable to the Companyas October 14, 2011 IPO. The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in nine offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $2 trillion. The firm has obtained many of the largest recoveries in history and has been ranked number one in the number of shareholder class action recoveries in MSCIas Top SCAS 50 every year since 2003. According to Cornerstone Research, the firmas recoveries have averaged 35% above the median for all firms over the past seven years (2005-2011). Please visit [ http://www.rgrdlaw.com ] for more information.