Robbins LLP is Investigating Allegations that Cambium Networks Corporation (CMBM) Misled Investors Regarding its Financial Prospects
Robbins LLP informs investors that a shareholder filed a class action on behalf of persons and entities that purchased Cambuim Networks Corporation (NASDAQ: CMBM) securities between May 8, 2023 and January 18, 2024. Cambium, together with its subsidiaries, engages in the design, development, and manufacture of wireless broadband and Wi-Fi networking infrastructure solutions.
The Allegations
According to the complaint, during the class period defendants failed to disclose that: (1) there was a buildup of inventory in the Company’s distribution channels; (2) that the Company and its distributors were reasonably likely to offer aggressive discounts to reduce the high channel inventories; (3) that the Company’s revenue would decline sequentially until the excess channel inventory was sold through; (4) that Cambium was likely to incur significant charges to writedown excess and obsolete inventory; (5) that, as a result of the foregoing, the Company’s fiscal 2023 revenue and earnings would be adversely affected; and (6) that, as a result of the foregoing, defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
When the truth was revealed, the Company’s share price declined, harming investors.
What Now: You may be eligible to participate in the class action against Cambium Networks Corporation. Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by July 22, 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.