SAN FRANCISCO, CA / ACCESSWIRE / May 15, 2024 / Hagens Berman urges Equinix, Inc. (NASDAQ:EQIX) investors who suffered substantial losses to take action by submitting your losses now.
Class Period: May 3, 2019 - Mar. 24, 2024
Lead Plaintiff Deadline: July 1, 2024
Visit: www.hbsslaw.com/investor-fraud/EQIX
Contact the Firm Now: EQIX@hbsslaw.com
844-916-0895
Equinix, Inc. (NASDAQ: EQIX) Class Action:
Equinix, a data center giant, finds itself in hot water with investors and regulators following a scathing report by short seller Hindenburg Research. The report alleges accounting manipulation and potential risks to the company's core business, triggering an investor class action lawsuit and launching investigations by the U.S. Attorney's Office and the SEC.
Hindenburg's Mar. 20, 2024 report accuses Equinix of inflating its profitability metric, Adjusted Funds from Operations (AFFO), by misclassifying maintenance expenses as growth investments. This alleged scheme could have boosted 2023 AFFO by as much as 22%, according to Hindenburg.
The report, based on employee interviews and financial statement analysis, paints a picture of widespread manipulation driven by management. It further alleges that executives received hefty stock-based compensation tied to inflated AFFO figures, potentially enriching themselves at investors' expense.
Beyond accounting concerns, Hindenburg raises red flags about Equinix's data center capacity. The report alleges the company oversold its power supply, potentially struggling to meet future demand from AI-driven workloads.
Equinix has denied Hindenburg's allegations, claiming an internal audit found no wrongdoing. However, the accusations sparked a class action lawsuit from investors who purchased Equinix shares between May 3, 2019, and Mar. 24, 2024. The lawsuit alleges that Equinix issued misleading statements and failed to disclose its accounting practices. Following the report, Equinix's stock price plummeted causing investor losses.
Adding to the company's woes, both the U.S. Attorney's Office and the SEC issued subpoenas in Apr. 2024, signifying formal investigations into Hindenburg's claims.
"We're investigating whether Equinix inflated it's AFFO and overstated its data center capacity," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Equinix and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »
If you'd like more information and answers to frequently asked questions about the Equinix case and our investigation, read more »
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About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP
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