Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in Ubiquiti Networks (NASDAQ:UBNT) in connection to alleged violations of securities laws by UBNT. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Ubiquiti Networks between September 28, 2012, and September 18, 2017.
The class action complaint specifically alleges that during the period in question, UBNT might have provided false and/or misleading material information, and/or failed to disclose adverse material information to the public, chiefly: that the company had overstated the size of its user community by more than three million users; the company’s reported accounts receivable were exaggerated; and that consequently the company’s statements to the public during the relevant period were false and misleading. Citron Research published a report on September 18, 2017 that examined “alarming red flags” that suggested the company participated in fraud, published misrepresentations about the size of its Ubiquiti Community, and misrepresented its accounts receivable; the report additionally suggested that the company’s markets were havens for money laundering, and that Ubiquiti’s cash balances created substantially less interest income compared to other tech companies. After the report was published, shortly after the sale by Ubiquiti’s Chairman and CEO of one million shares of UBNT, the company’s stock declined by almost 8%, closing at $50.62/share on September 18.
According to the company’s website, Ubiquiti Networks is a technology company that “currently focuses on 3 main technologies: hi-capacity distributed Internet access, unified information technology, and next-gen consumer electronics for home and personal use.” The company’s description continues: “The majority of the company’s resources consist of entrepreneurial and de-centralized R&D teams. Ubiquiti does not employ a traditional direct salesforce, but instead drives brand awareness largely through the company’s user community where customers can interface directly with R&D, marketing, and support. With over 70 million devices shipped in over 200 countries and territories in the world, Ubiquiti aims to connect everyone to everything, everywhere.”
A class action lawsuit has already been filed in connection with Ubiquiti Networks. If you wish to serve as lead plaintiff in the UBNT lawsuit, you must move the Court no later than November 24, 2017. If you wish to join the litigation, please contact Marc Fitapelli at 212-658-1501 or Jonathan Kurta at 212-658-1502. There is no cost or obligation to you and your ability to share in any recovery does not require that you serve as a lead plaintiff.