Aerohive Networks Inc (NYSE: HIVE) Investor Securities Class Action Lawsuit 01/19/2018

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Company Name(s): 
Aerohive Networks
Case Name: 
Aerohive Networks Shareholder Class Action Lawsuit 01/19/2018
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: HIVE
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
01/19/2018
Class Period Begin: 
11/01/2017
Class Period End: 
01/16/2018
Court of Filing: 
U.S. District Court for the Northern District of California
Deadline To File for Lead: 
03/20/2018
Summary: 

March 20, 2018 - Lead plaintiff motions were filed.

January 19, 2018 - An investor in shares of Aerohive Networks Inc (NYSE: HIVE) filed a lawsuit in the U.S. District Court for the Northern District of California over alleged violations of Federal Securities Laws by Aerohive Networks Inc in connection with certain allegedly false and misleading statements made between November 1, 2017 and January 16, 2018.

According to the complaint the plaintiff alleges on behalf of purchasers of Aerohive Networks Inc (NYSE: HIVE) common shares between November 1, 2017 and January 16, 2018, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between November 1, 2017 and January 16, 2018, the defendants made false and/or misleading statements and/or failed to disclose that there were underlying sales execution issues that were uncovered at the end of the third quarter of 2017, that consequently, Aerohive Networks Inc’s revenue guidance for the fourth quarter of 2017 was overstated, and that as a result, defendants’ public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.

Milpitas, CA based Aerohive Networks Inc together with its subsidiaries, has designed and developed a cloud-managed mobile networking platform that enables enterprises to deploy and manage a mobile-centric network edge. Aerohive Networks Inc reported that its annual Total Revenue increased from $151.66 million in 2015 to $169.82 million in 2016 and that its Net loss declined from $44.22 million in 2015 to $36.91 million in 2016.

Shares of Aerohive Networks Inc (NYSE: HIVE) grew from $3.12 per share in August 2017 to as high as $6.27 per share in December 2017.

On January 16, 2018, after the market closed, Aerohive Networks Inc announced that it expects to report net revenue of approximately $37 million, instead of its previously stated guidance of $40 million to $42 million. Aerohive Networks Inc attributed the reduced guidance to "underlying sales execution issues" including "underperforming sales team members."

Shares of Aerohive Networks Inc (NYSE: HIVE) declined to as low as $3.95 per share on January 17, 2018.

On January 19, 2018, NYSE:HIVE shares closed at $4.17 per share.