SAN DIEGO and CALABASAS, Calif., April 23, 2013 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP is investigating whether officers and directors of Ixia (NASDAQGS: XXIA) breached their fiduciary duties to shareholders. Ixia provides converged Internet Protocol network validation and network visibility solutions that are used to design, verify, and monitor Ethernet, Wi-Fi, and 3G/LTE equipment and networks.
Ixia Announces Financial Restatements for the 2010 and 2011 Fiscal Years and Parts of 2012
Robbins Arroyo LLP is investigating whether Ixia's financial reporting for fiscal years 2010 through 2012 was potentially false and misleading. On March 19, 2013, Ixia reported that the company would be unable to timely file its Annual Report for the fiscal year ended December 31, 2012, citing the need for additional time to correct an error related to the manner in which it recognized certain revenues. Then, on April 3, 2013, Ixia announced that it identified an additional error in the company's revenue recognition practices, requiring Ixia to restate its financial results for the 2010 and 2011 fiscal years and each fiscal quarter ended March 31, 2011 through September 30, 2012. Specifically, Ixia disclosed errors in its accounting practice related to when the company begins to recognize revenues associated with its warranty and software maintenance contracts. On this news, shares of Ixia declined over $2.50, or 12%, on April 4 and 5, 2013, to close at $17.79 per share.Robbins Arroyo LLP Investigates Failed Internal Controls and Potential Improper Public Statements by Ixia's Officers and Directors Robbins Arroyo LLP's investigation concerns whether certain of Ixia's officers and directors failed to implement adequate internal controls to ensure proper accounting practices. In addition, Robbins Arroyo LLP is investigating whether these fiduciaries issued false and misleading statements regarding: (i) the company's financial condition; (ii) and the implementation and maintenance of internal controls to ensure that Ixia complied with the Generally Accepted Accounting Principles.