SAN DIEGO, Oct. 27, 2015 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit was filed in California on behalf of certain purchasers of shares of Extreme Networks, Inc (NASDAQ:EXTR) over alleged Securities Laws Violations by Extreme Networks, Inc.
Investors who purchased shares of Extreme Networks, Inc (NASDAQ:EXTR) have certain options and for certain investors are short and strict deadlines running. Deadline: December 22, 2015. (NASDAQ:EXTR) investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff claims that defendants issued certain allegedly false and/or misleading statements and/or allegedly omitted adverse information concerning Extreme Networks' current financial condition and outlook for fiscal 2015, including, among other things, that Extreme Networks’ 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, the plaintiff alleges that Extreme Networks had begun an alliance with Lenovo, but between November 4, 2013 and April 9, 2015 defendants did not have sufficient visibility into Lenovo's server business plans to support the Company's quarterly and fiscal 2015 financial forecasts.
The plaintiff says that as a result of these misrepresentations and/or omissions, Extreme Networks' stock traded at artificially inflated prices between November 4, 2013 and April 9, 2015, 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, Inc announced 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. Extreme Networks, Inc 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, Inc and Enterasys salesforces, was "no longer with the Company."
Shares of Extreme Networks, Inc (NASDAQ:EXTR) declined from over $8 in January 2014 to as low as $2.10 per share on July 27, 2015.
Those who purchased (NASDAQ:EXTR) shares have certain options and should contact the Shareholders Foundation, Inc. by e-mail at mail@shareholdersfoundation.com or call +1 (858) 779-1554.
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
CONTACT: Shareholders Foundation, Inc.
Michael Daniels
+1 (858) 779-1554
mail@shareholdersfoundation.com
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
