Robbins LLP: Ubiquiti Networks, Inc. (UBNT) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a class action complaint was filed against Ubiquiti Networks, Inc. (NasdaqGS: UBNT). The complaint is brought on behalf of all purchasers of Ubiquiti securities between September 28, 2012 and September 18, 2017, for alleged violations of the Securities Exchange Act of 1934 by Ubiquiti’s officers and directors. Ubiquiti develops networking technology for service providers, enterprises, and consumers worldwide.
Ubiquiti Accused of Exaggerating Size of Its User Base
According to the complaint, Ubiquiti drives brand awareness through the company’s user community, known as the “Ubiquiti Community,” where customers can interface directly with R&D, marketing, and support. Ubiquiti officials allegedly exaggerated the size of the Ubiquiti Community by approximately 3,290,000 users in the company’s financial statements and press releases. On September 18, 2017, Citron Research published a report detailing a series of “alarming red flags” indicating that Ubiquiti engaged in corporate fraud and misrepresented the size of the Ubiquiti Community and levels of accounts receivable. The report further asserted that Ubiquiti’s big markets are money laundering havens and that the company’s cash balances generate far lower interest income as a percentage than other tech companies. Citron’s exposure closely followed the sale of one million shares of Ubiquiti stock by Ubiquiti’s Chairman and Chief Executive Officer, Robert J. Pera. On this news, Ubiquiti’s stock fell nearly 8% to close at $50.62 per share on September 18, 2017.
Ubiquiti Shareholders Have Legal Options
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