Shareholder rights law firm Johnson & Weaver, LLP announced that a class
action lawsuit was filed on behalf of purchasers of Extreme Networks,
Inc. (NASDAQ: EXTR) common stock during the period between November 4,
2013 and April 9, 2015 (the “Class Period”).
If you are an Extreme Networks shareholder and fit in one of the
following categories, we encourage you to contact Johnson & Weaver:
1) Shareholders buying Extreme Networks shares during the
Class Period with substantial losses.
2) Shareholders continuously holding shares before November 4, 2013.
As a long term shareholder, you may have standing to hold Extreme
Networks harmless from the damage the officers and directors caused by
making them personally responsible. You may also be able to assist in
reforming the Company’s corporate governance to prevent future
wrongdoing.
The complaint charges Extreme Networks and certain of its officers and
directors with violations of the Securities Exchange Act of 1934.
The complaint asserts that during the Class Period, Extreme Networks
issued false and/or misleading statements and/or omitted adverse
information concerning its 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.
Then 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.
If you wish to serve as a lead plaintiff, you must move the Court no
later than December 23, 2015.
If you purchased Extreme Networks shares during the Class Period, or
if you are a long term shareholder and wish to discuss this action,
please contact lead analyst Jim Baker (jimb@johnsonandweaver.com)
by email or by phone at 619-814-4471.
About Johnson & Weaver, LLP:
Johnson & Weaver, LLP is a nationally recognized shareholder rights law
firm with offices in California, New York and Georgia. The firm
represents individual and institutional investors in shareholder
derivative and securities class action lawsuits. For more information
about the firm and its attorneys, please visit http://www.johnsonandweaver.com.
Attorney advertising. Past results do not guarantee future outcomes.
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