According to the law firm press release, Aruba Networks is a leading provider of next-generation network access solutions for the mobile networks enterprise. The company's Mobile Virtual Enterprise (MOVE) architecture unifies wired and wireless network infrastructures into one seamless access solution for corporate headquarters, mobile business professionals, remote workers and guests.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company did not hold a competitive advantage over Cisco Systems, Inc. ("Cisco"); (ii) the Company was well aware of the weaknesses in Aruba's marketing abilities given the "bundling" advantages that Cisco held over Aruba; (iii) Cisco's bundling practices would greatly undermine the Company's market share and overall success rate in signing contracts with clients; and (iv) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On May 7, 2013, the Company issued a press release announcing preliminary results for the third quarter 2013,
and lowered its previously stated revenue guidance from $159 to $161 million to $144 to 147 million. On this news,
Aruba's shares declined $5.03 per share or over 22%, to close at $17.02 per share on May 7, 2013.
On May 16, 2013, the Company issued a press release announcing its financial results for the third quarter 2013;
reporting net income of $14 million or $0.11 per diluted share, well below analysts' expectations. On this news, Aruba's stock declined $4.51 per share or nearly 26%, to close at $13.10 per share on May 17, 2013. Despite the Company's prior Class Period statements minimizing the impact of Cisco's bundling capabilities on Aruba's profits, the Company now attributed its disappointed results on "a heightened level of competition and bundling strategy from our largest competitor [Cisco]."
On September 6, 2013, the motion was granted appointing PAR Investment Partners, L.P., as Lead Plaintiff for the Class and the law firm of Gold Bennett Cera & Sidener LLP was approved and appointed as Lead Counsel for the proposed Class.
On April 8, 2014, a statement was filed on the recent decision of motion to dismiss by the defendants.
On February 2, 2015, the Court issued an Order granting Defendants' Motion to Dismiss with prejudice, and closing this case.