Branham Law, LLP announces an investigation has been launched and a lawsuit filed on behalf of shareholders of Ubiquiti Networks, Inc. (NASDAQ: UBNT) for alleged violations of securities and shareholder protection laws.
Branham Law, LLP’s investigation is concentrated on the directors and officers of Ubiquiti and whether they harmed the company and investors by issuing false and misleading statements about the Company’s current and future business prospects. Specifically, it appears that Ubiquiti misled investors by failing to disclose information related to counterfeit versions of its airMax wireless gear being sold by Kozumi USA Corp ("Kozumi"), a former distributor of Ubiquiti. Because of the directors’ and officers’ alleged materially false and misleading statements and material omissions, the Company’s stock traded at artificially inflated prices with a high of $35 per share on May 1, 2012.
On May 1, 2012, Ubiquiti announced financial results for the third quarter fiscal year 2012, and revealed that Kozumi had illegally obtained source codes and designs for the airMax products. As a result, the Company’s stock plummeted $6.10 per share to close at $28.90 per share on May 2, 2012. Then, on August 9, 2012, Ubiquiti announced its fourth quarter results for fiscal year 2012 and issued a warning that its 2013 forecasts were downgraded by the sale of the unauthorized airMax products. On this news, Ubiquiti stock declined $6.30 per share, a one-day decline of nearly 42%.
If you purchased shares of Ubiquiti prior to May 1, 2012 or have relevant information regarding this suit, you are urged to contact attorney Trey Branham at email@example.com or toll free at (855) 722-5910.Branham Law, LLP has significant experience in shareholder representation nationwide.