SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders With Losses on Their Investment in Extreme Networks Inc. of Class...
November 13 2015 - 4:33PM
Pomerantz LLP announces that a class action lawsuit has been filed
against Extreme Networks Inc. (“Extreme Networks” or the “Company”)
(NASDAQ:EXTR) and certain of its officers. The class
action, filed in United States District Court, Northern District of
California, is on behalf of a class consisting of all persons or
entities who purchased Extreme Networks securities between November
4, 2013 and April 9, 2015 inclusive (the “Class Period”).
This class action seeks to recover damages against Defendants for
alleged violations of the federal securities laws under the
Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who purchased Extreme
Networks securities during the Class Period, you have until
December 22, 2015 to ask the Court to appoint you as Lead Plaintiff
for the class. A copy of the Complaint can be obtained at
www.pomerantzlaw.com. To discuss this action, contact Robert
S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or
888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail
are encouraged to include their mailing address, telephone number,
and number of shares purchased.
Extreme Networks develops and sells network
infrastructure equipment and offers related services contracts for
extended warranty and maintenance.
The Complaint alleges that throughout the Class
Period, defendants made materially false and misleading statements
regarding the Company’s business, operational and compliance
policies. Specifically, defendants issued false and/or misleading
statements and/or omitted adverse information concerning Extreme
Networks' current financial condition and outlook for fiscal 2015,
including, among other things, that the Company's revenue growth
depended on the successful integration of Enterasys Networks, Inc.,
which Extreme Networks had acquired in 2013 but had not
successfully integrated, which materially impaired the Company's
ability to address persisting sales problems. In addition, Extreme
Networks had begun an alliance with Lenovo, but during the Class
Period defendants did not have sufficient visibility into Lenovo's
server business plans to support the Company's quarterly and fiscal
2015 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.
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 salesforces, was "no longer with the
Company."
On these disclosures, the Company's stock price
fell almost 25%, from $3.24 per share to $2.50 per share.
The Pomerantz Firm, with offices in New York,
Chicago, Florida, and Los Angeles, is acknowledged as one of the
premier firms in the areas of corporate, securities, and antitrust
class litigation. Founded by the late Abraham L. Pomerantz, known
as the dean of the class action bar, the Pomerantz Firm pioneered
the field of securities class actions. Today, more than 70 years
later, the Pomerantz Firm continues in the tradition he
established, fighting for the rights of the victims of securities
fraud, breaches of fiduciary duty, and corporate misconduct. The
Firm has recovered numerous multimillion-dollar damages awards on
behalf of class members. See www.pomerantzlaw.com
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
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