Robbins Umeda LLP Announces an Investigation of Ubiquiti Networks, Inc.
Robbins Umeda LLP is investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Ubiquiti Networks, Inc. (NASDAQGS: UBNT). Concerned shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Gregory E. Del Gaizo at (800) 350-6003.
Robbins Umeda LLP’s investigation focuses on whether the directors and officers of Ubiquiti harmed the company and investors by issuing improper statements about the condition and future business prospects of the company. In particular, it is alleged that Ubiquiti misled the investing public and failed to disclose known facts related to counterfeit versions of its airMax wireless gear being sold by Kozumi USA Corp (“Kozumi”), a former distributor of Ubiquiti. As a result of the directors’ and officers’ false statements, Ubiquiti’s stock traded at artificially inflated prices with a high of $35 per share on May 1, 2012.
On May 1, 2012, Ubiquiti announced disappointing third quarter fiscal year 2012 financial results, and acknowledged that Kozumi had stolen source codes and proprietary designs for the profitable airMax line of products. On this news, Ubiquiti stock declined $6.10 per share to close at $28.90 per share on May 2, 2012. On August 9, 2012, Ubiquiti announced its fourth quarter fiscal 2012 financial results and warned that its forecast for the first quarter of fiscal 2013 would be hurt by the distribution of the unauthorized copies of its airMax products, which was more widespread than previously disclosed. In a statement, Ubiquiti said “the amount of counterfeited goods, combined with the impact it has on our distributor’s inventory and the purchasing patterns of our customers, will impact our business outlook for the next two fiscal quarters.” As a result of this news, Ubiquiti stock declined $6.30 per share to close at $8.71 per share on August 10, 2012, a one-day decline of nearly 42%.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.