Extreme Networks Inc (NASDAQ: EXTR) Investor Securities Class Action Lawsuit 10/23/2015

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Company Name(s): 
Extreme Networks
Case Name: 
Extreme Networks Shareholder Class Action Lawsuit 10/23/2015
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Affected Securities
NASDAQ: EXTR
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
10/23/2015
Class Period Begin: 
11/04/2013
Class Period End: 
04/09/2015
Court of Filing: 
U.S. District Court for the Northern District of California
Deadline To File for Lead: 
12/22/2015
Date Settled: 
03/13/2019
Settlement Amount: 
$7,000,000
Deadline to Participate in Settlement: 
06/06/2019
Summary: 

March 13, 2019 - The court preliminarily approved the settlement.

November 30, 2018 - Parties filed a stipulation of settlement.

March 21, 2018 - The court granted in part and denied in part defendants' motion to dismiss.

July 10, 2017 - Defendants filed a motion to dismiss.

June 3, 2017 - The lead plaintiff filed an amended complaint.

April 27, 2017 - The court granted defendants' motion to dismiss with leave to amend.

November 10, 2016 - Defendants filed a motion to dismiss.

September 26, 2016 - The lead plaintiff filed an amended complaint.

June 28, 2016 - Lead plaintiff and lead counsel were appointed.

December 22, 2015 - Lead plaintiff motions were filed.

October 23, 2015 - An investor in shares of Extreme Networks Inc (NASDAQ: EXTR) filed a lawsuit in the U.S. District Court for the Northern District of California over alleged violations of Federal Securities Laws by Extreme Networks Inc in connection with certain allegedly false and misleading statements made between November 4, 2013 and April 9, 2015.

According to the complaint the plaintiff alleges on behalf of purchasers of Extreme Networks Inc (NASDAQ: EXTR) common shares between November 4, 2013 and April 9, 2015, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between November 4, 2013 and April 9, 2015 defendants issued allegedly false and/or misleading statements and/or allegedly omitted adverse information concerning Extreme Networks Inc's current financial condition and outlook for fiscal 2015, including, among other things, that Extreme Networks Inc’s revenue growth depended on the successful integration of Enterasys Networks Inc, which Extreme Networks Inc had acquired in 2013 but had not successfully integrated, which materially impaired the Company's ability to address persisting sales problems.

In addition, the plaintiff alleges that Extreme Networks Inc had begun an alliance with Lenovo, but between November 4, 2013 and April 9, 2015 defendants did not have sufficient visibility into Lenovo's server business plans to support the Company's quarterly and fiscal 2015 financial forecasts.

The plaintiff says that as a result of these misrepresentations and/or omissions, Extreme Networks Inc's stock traded at artificially inflated prices between November 4, 2013 and April 9, 2015, reaching a high of $8.14 per share in intraday trading on January 23, 2014.

Extreme Networks, Inc reported that its Total Revenue rose from $299.34 million for the 52 weeks period that ended on June 30, 2013 to $552.94 million for the 52 weeks period that ended on June 30, 2015, while its Net Income of $9.67 million for the 52 weeks period that ended on June 30, 2013 declined to a Net Loss of $71.64 million for the 52 weeks period that ended on June 30, 2015.

On April 9, 2015, after the markets closed, Extreme Networks Inc announced that it would miss guidance for the third quarter of 2015, reporting revenue of $118-$120 million and earnings per share of ($0.09)-($0.07), significantly below prior guidance of $130-$140 million and ($0.03)-$0.02, respectively. Extreme Networks Inc also announced that trading in its shares had been halted and that Jeff White, the Company's Chief Revenue Officer, who had been hired only six months earlier to manage the integration of the Extreme Networks Inc and Enterasys salesforces, was "no longer with the Company."