NEW YORK, July 2, 2024 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Cambium Networks Corporation ("Cambium" or the "Company") (NASDAQ: CMBM). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
The class action concerns whether Cambium and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
You have until July 22, 2024, to ask the Court to appoint you as Lead Plaintiff for the class if you are a shareholder who purchased or otherwise acquired Cambium securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.
[Click here for information about joining the class action]
On August 1, 2023, after the market closed, Cambium reported that second quarter 2023 revenue fell 23% sequentially due to "higher channel inventories" that resulted in lower demand for Enterprise products." As a result, the Company reduced its fiscal 2023 guidance, advising investors that it expected revenue to decline 7% to 11% year-over-year. Cambium also announced that its Chief Executive Officer, Atul Bhatnagar, would step down immediately.
On this news, Cambium's stock price fell $4.89 per share, or 30.07%, to close at $11.37 per share on August 2, 2023.
Then, on October 4, 2023, Cambium announced preliminary third quarter 2023 revenue "between $40.0-$45.0 million compared to the previous outlook of $62.0-$70.0 million[.]" Cambium attributed the shortfall to, in part, "a decrease in orders and an increase in stock rotations from distributors in the Enterprise business" and "pressure" from "channel inventories."
On this news, Cambium's stock price fell $2.87 per share, or 36.2%, to close at $5.05 per share on October 5, 2023.
Finally, on January 18, 2024, Cambium revealed that preliminary fourth quarter 2023 revenue was expected to be "approximately $40.0 million compared to the previous outlook of $45.0-$50.0[.]" Cambium attributed the revenue shortfall to "offering aggressive Enterprise product discounts to clear excess channel inventories." The Company further revealed that "gross margin will also be below the low end of the range due to increased excess and obsolete inventory reserves." Moreover, Cambium disclosed that its Chief Financial Officer would depart Cambium on February 2, 2024.
On this news, Cambium's stock price fell $0.60 per share or 12.4%, to close at $4.24 per share on January 19, 2024.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, 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, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz 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.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Danielle Peyton
Pomerantz LLP
dpeyton@pomlaw.com
646-581-9980 ext. 7980
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SOURCE Pomerantz LLP
