Robbins LLP is Investigating Allegations that Equinix, Inc. (EQIX) Misled Investors Regarding its Financial Health
Robbins LLP informs investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Equinix, Inc. (NASDAQ: EQIX) securities between May 3, 2019 and March 24, 2024. Equinix describes itself as “the world’s digital infrastructure company.” Equinix operates as a real estate investment trust (“REIT”) and owns data centers in most parts of the world.
The Allegations
According to the complaint, during the class period, defendants failed to disclose that Equinix: (1) manipulated its financials to reduce operational expenses and boost Adjusted Funds from Operations; (2) oversold power capacity and did not warn of the risks associated with this practice; and (3) lacked adequate internal controls.
Plaintiff alleges that when news of this wrongdoing was revealed on March 20, 2024, the price of Equinix stock fell by $19.70 per share, or 2.33%, to close at $824.88. The next day, it fell another $13.24, or 1.6%, to close at $811.64.
The complaint then alleges that on March 25, 2024, Equinix filed a report with the SEC announcing the “Audit Committee of the Company’s Board of Directors has commenced an independent investigation to review the matters referenced in a recent short seller report. Shortly after the release of the report, the company received a subpoena from the U.S. Attorney’s Office for the Northern District of California.” On this news, the price of the Company’s stock fell by $8.24 per share, to close at $792.52 on March 25, 2024.
What Now: You may be eligible to participate in the class action against Equinix, Inc. Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by July 1, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.