Case Page

 

Case Status:    ONGOING    
On or around 09/21/2017 (Ongoing date of last review)

Filing Date: October 23, 2015

According to the law firm press release, Extreme Networks develops and sells network infrastructure equipment and offers related services contracts for extended warranty and maintenance.

The complaint alleges that during the Class Period, defendants issued false and/or misleading statements and/or omitted adverse information concerning Extreme Networks’ current financial condition and outlook for fiscal 2015, including, among other things, that the Company’s revenue growth depended on the successful integration of Enterasys Networks, Inc., which Extreme Networks had acquired in 2013 but had not successfully integrated, which materially impaired the Company’s ability to address persisting sales problems. In addition, Extreme Networks had begun an alliance with Lenovo, but during the Class Period defendants did not have sufficient visibility into Lenovo’s server business plans to support the Company’s quarterly and fiscal 2015 financial forecasts. As a result of these misrepresentations and/or omissions, Extreme Networks’ stock traded at artificially inflated prices during the Class Period, reaching a high of $8.14 per share in intraday trading on January 23, 2014.

Then on April 9, 2015, after the markets closed, Extreme Networks preannounced that it would miss guidance for the third quarter of 2015, reporting revenue of $118-$120 million and earnings per share of ($0.09)-($0.07), significantly below prior guidance of $130-$140 million and ($0.03)-$0.02, respectively. The Company also announced that trading in its shares had been halted and that the Company’s Chief Revenue Officer, who had been hired only six months earlier to manage the integration of the Extreme Networks and Enterasys salesforces, was “no longer with the Company.” On these disclosures, the Company’s stock price fell almost 25%, from $3.24 per share to $2.50 per share.

Plaintiffs filed a consolidated complaint on September 26, 2016.

On April 27, 2017, the Court granted Defendants' Motion to Dismiss with leave to amend. An amended complaint was filed on June 2.

COMPANY INFORMATION:

Sector: Technology
Industry: Computer Networks
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: EXTR
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: N.D. California
DOCKET #: 15-CV-04883
JUDGE: Hon. Beth Labson Freeman
DATE FILED: 10/23/2015
CLASS PERIOD START: 11/04/2013
CLASS PERIOD END: 04/09/2015
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Holzer & Holzer, LLC
    1117 Perimeter Center West, Suite E-107, Holzer & Holzer, LLC, GA 30338
    770.392.0090 770.392-0029 · mfistel@holzerlaw.com
  2. Robbins Geller Rudman & Dowd LLP (San Francisco)
    100 Pine Street, Suite 2600, Robbins Geller Rudman & Dowd LLP (San Francisco), CA 94111
    415.288.4545 415.288.4534 ·
No Document Title Filing Date
COURT: N.D. California
DOCKET #: 15-CV-04883
JUDGE: Hon. Beth Labson Freeman
DATE FILED: 06/02/2017
CLASS PERIOD START: 09/12/2013
CLASS PERIOD END: 04/09/2015
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berman DeValerio (San Francisco)
    425 California Street, Suite 2100, Berman DeValerio (San Francisco), CA 94104
    415.433.3200 415.433.3200 ·
  2. Labaton Sucharow LLP
    140 Broadway, Labaton Sucharow LLP, NY 10005
    212.907.0700 212.818.0477 · info@labaton.com
No Document Title Filing Date