Extreme Networks Corporation investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, Extreme Networks develops and sells network infrastructure equipment and offers related services contracts for extended warranty and maintenance.
The complaint alleges that Extreme Networks and certain of its executive officers made a series of false and misleading statements during the Class Period, and failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, the complaint alleges that the defendants issued materially false and misleading statements and/or failed to disclose that: (a) the company’s revenue growth depended on successfully integrating Enterasys and especially the Enterasys sales force, but the company was not integrating and had not successfully or substantially integrated Enterasys; (b) the failure to integrate the sales forces materially impaired the company’s ability to address persisting problems with “slipping” (i.e., delayed and cancelled) sales, steep discounting, and costs related to inefficiently processed orders; and (c) Extreme Networks did not have visibility into Lenovo’s server business plans, and/or defendants knew that Lenovo was unprepared or unwilling to begin selling Extreme Networks’ products during the timeframe or in the amounts necessary to support the company’s quarterly and FY15 financial forecasts.
As a result of these misrepresentations and/or omissions, Extreme Networks’ stock traded at artificially inflated prices during the Class Period, reaching a high of $8.14 per share in intraday trading on January 23, 2014.
The Class Period starts on November 4, 2013, when Extreme Networks issued a press release, which, among other things, announced 2014 First Quarter results and 2014 Second Quarter 2014 guidance. The complaint alleges that on April 9, 2015, after the markets closed, Extreme Networks preannounced that it would miss guidance for the third quarter of 2015, reporting revenue of $118-$120 million and earnings per share of ($0.09)-($0.07), significantly below prior guidance of $130-$140 million and ($0.03)-$0.02, respectively. The company also announced that trading in its shares had been halted and that Jeff White, the company’s Chief Revenue Officer, who had been hired only six months earlier to manage the integration of the Extreme Networks and Enterasys sales forces, was “no longer with the Company.” Following these disclosures, the company’s stock price fell almost 25%, from $3.24 per share to $2.50 per share..
If you are a member of the class described above, you may no later than December 22, 2015, move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706