SAN DIEGO, Aug. 16, 2024 /PRNewswire/ --Robbins Geller Rudman & Dowd LLP announces that purchasers of Extreme Networks, Inc. (NASDAQ: EXTR) common stock between July 27, 2022 and January 30, 2024, both dates inclusive (the "Class Period"), have until October 15, 2024 to seek appointment as lead plaintiff of the Extreme Networks class action lawsuit. Captioned Steamfitters Local 449 Pension & Retirement Security Funds v. Extreme Networks, Inc., No. 24-cv-05102 (N.D. Cal.), the Extreme Networks class action lawsuit charges Extreme Networks and certain of its top current and former executive officers with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the Extreme Networks class action lawsuit, please provide your information here:
https://www.rgrdlaw.com/cases-extreme-networks-inc-class-action-lawsuit-extr.html
You can also contact attorneys J.C. Sanchez or Jennifer N. Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at info@rgrdlaw.com. Lead plaintiff motions for the Extreme Networks class action lawsuit must be filed with the court no later than October 15, 2024.
CASE ALLEGATIONS: Extreme Networks is a global provider of cloud-based computer networking equipment and related services and support.
The Extreme Networks class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that, among other things, Extreme Networks was suffering from adverse client demand trends as its clients had ordered more product from Extreme Networks than needed in the wake of the COVID-19 pandemic and that Extreme Networks was increasingly offsetting these adverse organic demand trends with the fulfillment of backlog orders in a manner that materially exceeded the proportion represented to investors.
The Extreme Networks class action lawsuit further alleges that on January 25, 2023, Extreme Networks announced the resignation of defendant Rémi Thomas, Extreme Networks' CFO, and also revealed that compared to the first quarter of 2023, Extreme Networks' backlog had fallen to $542 million, its Product Book to Bill Ratio had fallen from 1.3x to 0.9x, and its Service Book to Bill Ratio had fallen from 1.4x to 1.2x. On this news, Extreme Networks' share price declined by nearly 15%, according to the complaint.
Then, on August 24, 2023, Extreme Networks disclosed that its backlog stood at just $267.3 million, revealing a roughly $245 million decline year-over-year and a $275.7 million decline during the prior six months, according to the Extreme Networks class action lawsuit. On this news, Extreme Networks' share price declined by approximately 9%, according to the complaint.
Thereafter, on November 1, 2023, Extreme Networks further revealed that working through its backlog was resulting in an "air pocket of demand" among end customers that resulted in "more tempered" revenue growth outlook of "mid-to-high single digits" for fiscal year 2024, and that Extreme Networks was now expecting normalized backlog of between $75 million to $100 million "by the end of Q4 fiscal '24," according to the Extreme Networks class action lawsuit. On this news, Extreme Networks' share price declined by approximately 13%, according to the complaint.
Next, the Extreme Networks class action lawsuit alleges that on January 8, 2024 Extreme Networks provided a business update lowering its second quarter of 2024 and long-term revenue outlooks. On this news, Extreme Networks' share price declined by approximately 7%, according to the complaint.
Finally, on January 31, 2024, Extreme Networks disclosed: that its revenues for the second quarter of 2024 were $296.4 million, down 7% year-over-year; that it had generated just $186.6 million in product revenue, a decline of 37% year-over-year; that its product backlog had already normalized during the quarter; and that Extreme Networks made the "conscious decision to put channel digestion behind [it] in the March quarter," leading to a "$40 million to $50 million reduction in channel inventory in the third quarter" that would result in "[d]emand . . . be[ing] masked by inventory flowing out of the channel," according to the complaint. Rather than increasing revenues as previously represented, Extreme Networks also provided new guidance that revealed Extreme Networks was in fact on track to suffer lower revenues in fiscal year 2024 and, in a related earnings call, defendant Edward B. Meyercord III, Extreme Networks' President and CEO, acknowledged that Extreme Networks' "baseline business" was on track to achieve only about $1.1 billion in annual revenues, according to the Extreme Networks class action lawsuit. On this news, Extreme Networks' share price declined by approximately 24% over three trading days, according to the complaint.
The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud. You can view a copy of the complaint by clicking here.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Extreme Networks common stock during the Class Period to seek appointment as lead plaintiff in the Extreme Networks class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Extreme Networks class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Extreme Networks class action lawsuit. An investor's ability to share in any potential future recovery of the Extreme Networks class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER: Robbins Geller Rudman & Dowd LLP is one of the world's leading law firms representing investors in securities fraud cases. Our Firm has been #1 in the ISS Securities Class Action Services rankings for six out of the last ten years for securing the most monetary relief for investors. We recovered $6.6 billion for investors in securities-related class action cases – over $2.2 billion more than any other law firm in the last four years. With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs' firms in the world and the Firm's attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit the following page for more information:
https://www.rgrdlaw.com/services-litigation-securities-fraud.html
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Contact:
Robbins Geller Rudman & Dowd LLP
J.C. Sanchez, Jennifer N. Caringal
655 W. Broadway, Suite 1900, San Diego, CA 92101
800-449-4900
info@rgrdlaw.com
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SOURCE Robbins Geller Rudman & Dowd LLP
