Robbins Umeda LLP Announces an Investigation of Equinix, Inc.
Robbins Umeda LLP, a shareholder rights litigation firm, has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Equinix, Inc. (NASDAQ: EQIX). Equinix provides network neutral data center services to enterprises, content providers, financial services companies, and network service providers. Equinix is headquartered in Redwood City, California.
Robbins Umeda LLP’s investigation concerns whether the officers and directors of Equinix issued materially inaccurate statements to the investing public between July 29, 2010 and October 5, 2010. We are investigating whether Equinix failed to disclose that the company was having difficulty with the integration of its acquisition of Switch and Data Corporation Facilities Company, Inc. into its operations due to a decline in bookings prior to the close of the acquisition and due to Equinix’s aggressive synergy plan.
On October 5, 2010, Equinix issued a press release lowering its third quarter and fiscal year 2010 guidance. The company explained during the following analyst conference call that its colocation services business was not as robust as previously disclosed. As a result, the company stated it would transition from a demand fulfillment business model to a demand creation model. After the disclosure of these facts, the company’s value fell 33%.