Ubiquiti Networks, Inc. develops technology platforms for high-capacity distributed Internet access, unified information technology, and next-generation consumer electronics for home and personal use.
According to the law firm press release, on September 18, 2017, Citron Research issued a report entitled "Cintron Exposes Ubiquiti Networks," (the "Citron Report") in which Citron detailed a series of "alarming red flags," indicating that the Company has been deceiving investors and is engaged in "corporate fraud," including, among other things, that the Company has misrepresented the size of its purported "Ubiquiti Community," as well as its levels of accounts receivable, among other things. This news caused Ubiquiti's stock price to fall, harming investors.
Then, on February 20, 2018, Ubiquiti filed a Form 8-K with the Securities and Exchange Commission revealing that the SEC "issued subpoenas to Ubiquiti Networks, Inc. and certain of the Company's officers requesting documents and information" relating to a range of topics. On this news, the Company's stock fell more than 25 percent, causing millions in losses to investors.
The Complaint alleges that between May 9, 2013 and February 20, 2018, inclusive (the "Class Period"), Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, the Complaint alleges that Defendants made false and/or misleading statements and/or failures to disclose pertaining to a range of topics, including (i) the number of the Company's purported user community was drastically overstated; (ii) that it had exaggerated its publicly reported accounts receivable; and (iii) that as a result of the foregoing, Ubiquiti's publicly disseminated financial statements were materially false and misleading.
On October 24, 2018, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. The consolidated cases shall be captioned "In re Ubiquiti Networks, Inc. Securities Litigation." On December 24, Lead Plaintiff filed a consolidated amended Complaint.
The parties entered into a Stipulation of Settlement on December 2, 2019. On December 11, the Court granted preliminary approval of the Settlement. On March 27, 2020, the Court granted final approval of the Settlement and entered Final Judgment. The Court issued an Order granting disbursement of Settlement funds on November 30.