Philadelphia, Pennsylvania--(Newsfile Corp. - October 18, 2024) - Grabar Law Office is investigating claims on behalf of Extreme Networks, Inc. (NASDAQ: EXTR) shareholders. The investigation concerns whether certain officers of Extreme Networks have breached their fiduciary duties owed to the company.
Shareholders who have held Extreme Networks stocksince on or before July 27, 2022should visit https://grabarlaw.com/the-latest/extreme-networks-shareholder-investigation/. You can seek corporate reforms, the return of funds spent defending litigation back to the company, and a court approved incentive award, at no cost to you.
WHY: A recently filed securities fraud class action complaint alleges that that Extreme Networks, through certain of its officers and directors, made false and/or misleading statements and failed to disclose the following adverse facts pertaining to Extreme's business, operations, and financial condition: (a) that Extreme Networks was suffering from adverse client demand trends as its clients had ordered more product from Extreme than needed in the wake of the COVID-19 pandemic to avoid supply shortages and because of a lack of alternative sourcing options and thereby had cannibalized their purchasing needs; (b) 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; (c) that, as a result of (a)-(b), Extreme Networks was drawing down its backlog at a much faster rate than represented to investors; (d) that, as a result of (a)-(c), Extreme Networks' backlog was already decreasing and at a much quicker pace than the Company's statements to investors that backlog would only "begin to shrink" in 4Q23 and it would be not until "fiscal '26 when it really goes back to normal"; (e) that, as a result of (a)-(d), Extreme Networks' backlog was not on track to continue increasing to $600 million; and (f) that, as a result of (a)-(e) above, Defendants had materially misrepresented Extreme Networks' organic demand, revenue growth, and market share gains as the fulfillment of Extreme's backlog masked a decline in organic demand and attendant revenues.
WHAT YOU CAN DO NOW: Current Extreme Networks shareholders who have held Extreme Networks shares since prior to July 27, 2022, can seek corporate reforms, the return of funds back to the company, and a court approved incentive award at no cost whatsoever.
If you would like to learn more about this matter, you are encouraged to visit https://grabarlaw.com/the-latest/extreme-networks-shareholder-investigation/, contact Joshua H. Grabar at jgrabar@grabarlaw.com, or call us at 267-507-6085.
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