Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against Ubiquiti Networks, Inc.

Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Northern District of California on behalf of all persons or entities that purchased the securities of Ubiquiti Networks, Inc. (“Ubiquiti” or the “Company”) (NASDAQ GS: UBNT) between October 14, 2011 and August 9, 2012, inclusive, (the “Class Period”) and/or pursuant or traceable to the Company’s October 14, 2011 initial public offering (the “IPO”), alleging violations of the Securities Act of 1933 and the Securities Exchange Act of 1934 against the Company, certain of its officers and directors, and the underwriters in the IPO (the “Complaint”).

If you purchased shares of Ubiquiti during the Class Period, and/or pursuant or traceable to the IPO and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 825 East Gate Boulevard, Suite 300, Garden City, NY at (888) 969-4242, by e-mail to info@rigrodskylong.com, or at: http://www.rigrodskylong.com/investigations/ubiquiti-networks-inc-ubnt.

Ubiquiti, a Delaware corporation headquartered in San Jose, California, leverages innovative proprietary technologies to deliver wireless networking solutions with compelling price-performance characteristics to both start-up and established network operators and service providers. The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company’s business operations, financial condition and prospects. Specifically, the Complaint alleges that the defendants knew, but concealed from the investing public: (1) the true magnitude of the risks the Company faced from counterfeit goods; (2) the widespread nature and extent of the counterfeit operations and the impact the counterfeit activities would have on the Company’s future operating results; (3) the increased risks to the Company’s operations due to its unique business model, whereby it relied exclusively upon distributors to sell its products to end customers; and (4) that the Company lacked the proper internal controls to prevent its product designs from being stolen and replicated. As a result of defendants’ false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.

According to the Complaint, on May 1, 2012, after announcing disappointing third quarter fiscal year 2012 financial results, the Company acknowledged that Kozumi USA Corp., a former distributor of Ubiquiti’s, had stolen source codes and proprietary designs for the Company’s popular and profitable AirMax line of products and was engaged in a scheme to manufacture and distribute counterfeit Ubiquiti products in South America and other emerging markets in direct competition with the Company. On this news, shares in Ubiquiti plummeted over 17%, from a close of $35.00 per share on May 1, 2012 to $28.90 per share on May 2, 2012, on volume of over 4 million shares.

Thereafter, on August 9, 2012, the Company announced its fourth quarter fiscal 2012 financial results and announced disappointed guidance for the first quarter of fiscal 2013. Ubiquiti admitted that the distribution of the unauthorized copies of its communications gear was more widespread than previously disclosed and would have a detrimental impact on the Company’s future results. On this news, shares in Ubiquiti declined almost 42%, from a close of $15.01 per share on August 9, 2012 to $8.71 per share on August 10, 2012, on volume of over 7 million shares.

If you wish to serve as lead plaintiff, you must move the Court no later than November 7, 2012. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.

Attorney advertising. Prior results do not guarantee a similar outcome.

Copyright Business Wire 2010

If you liked this article you might like

It's Buyer Beware on Ubiquiti Networks

It's Buyer Beware on Ubiquiti Networks

This Company Could Be a Fraud, Noted Short-Seller Andrew Left Says

This Company Could Be a Fraud, Noted Short-Seller Andrew Left Says

Stock Picking Is Getting Tough

Stock Picking Is Getting Tough

Got an Email Marked 'Urgent' From the Boss? Think Twice Before Responding too Quickly

Got an Email Marked 'Urgent' From the Boss? Think Twice Before Responding too Quickly

Chesapeake Energy, Priceline, Schlumberger, ZELTIQ : 'Mad Money' Lightning Round

Chesapeake Energy, Priceline, Schlumberger, ZELTIQ : 'Mad Money' Lightning Round