Ubiquiti Networks Inc (NASDAQ: UBNT) Investor Securities Class Action Lawsuit 09/07/2012

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Company Name(s): 
Ubiquiti Networks
Case Name: 
Ubiquiti Networks Shareholder Class Action Lawsuit 09/07/2012
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
Class Period Begin: 
Class Period End: 
Court of Filing: 
U.S. District Court for the Northern District of California
Deadline To File for Lead: 
Date Settled: 
Settlement Amount: 
Deadline to Participate in Settlement: 

The settlement includes all persons who or which purchased or acquired the publicly traded common stock of Ubiquiti Networks Inc pursuant and/or traceable to Ubiquiti Networks Inc’s initial public offering on or about October 14, 2011.

December 20, 2017 - The court approved the settlement and entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissing the action with prejudice.

September 13, 2017 - The court preliminarily approved the settlement.

August 4, 2017 - Parties filed a stipulation of settlement.

January 30, 2017 - The lead plaintiff filed a second amended consolidated complaint.

October 24, 2016 - The U.S. Court of Appeals for the Ninth Circuit affirmed in part, reversed in part and remanded the judgement of the district court.

May 15, 2014 - The lead plaintiffs filed a notice of appeal.

April 16, 2014 - The court issued a judgement in favor of the defendants and ordered the case dismissed with prejudice.

March 26, 2014 - The court granted the defendants' motions to dismiss and granted lead plaintiffs leave to file an amended complaint.

March 26, 2013 - The defendants filed motions to dismiss.

January 29, 2013 - The lead plaintiffs filed an amended consolidated complaint.

November 30, 2012 - The lead plaintiffs and lead counsel were appointed and all cases were consolidated.

November 6, 2012 - Lead plaintiff motions were filed.

September 7, 2012 - An investor in shares of Ubiquiti Networks Inc (NASDAQ: UBNT) filed a lawsuit in the U.S. District Court for the Northern District of California against Ubiquiti Networks Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between October 14, 2011 and August 9, 2012.

According to the complaint the plaintiff alleges on behalf of purchasers of Ubiquiti Networks Inc (NASDAQ: UBNT) common stock during the period between October 14, 2011 and August 9, 2012 and/or who acquired Ubiquiti common stock pursuant or traceable to the Company’s October 14, 2011 initial public offering, that Ubiquiti Networks Inc (NASDAQ: UBNT) certain of its officers and directors and the underwriters of its IPO violated the Securities Exchange Act of 1934 and the Securities Act of 1933.

Specifically, the plaintiff alleges that between October 14, 2011 and August 9, 2012 and in the Registration Statement and Prospectus issued in connection with the initial public offering (“IPO)” defendants issued allegedly materially false and misleading statements regarding Ubiquiti Networks Inc’s business practices and financial results.
Shares of Ubiquiti Networks Inc (NASDAQ: UBNT) traded on May 1, 2012 as high as $35 per share, but have since then lose substantially in value.
On May 1, 2012, Ubiquiti Networks Inc announced its third quarter fiscal year 2012 financial results.

However, the plaintiff says that defendants allegedly failed to disclose negative trends in Ubiquiti Networks Inc business, including widespread problems associated with counterfeit versions of its AirMax wireless gear being made available to the market.
The plaintiff claims that defendants allegedly knew, but concealed from the investing public the true magnitude of the risks the Company faced from counterfeit goods, the widespread nature and extent of the counterfeit operations and the impact the counterfeit activities would have on the Company’s future operating results, 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 that the Company lacked the proper internal controls to prevent its product designs from being stolen and replicated.

Then on August 9, 2012, Ubiquiti Networks Inc reported its fourth quarter fiscal 2012 results. Among other things, Ubiquiti Networks Inc said that the amount of counterfeited goods, combined with the impact it has on its distributor’s inventory and the purchasing patterns of its customers, will impact its business outlook for the next two fiscal quarters.

Shares of Ubiquiti Networks Inc (NASDAQ: UBNT) fell from $15.01 per share on August 9, 2012, to $8.605 per share on August 10, 2012.

On September 7, 2012, NASDAQ: UBNT shares closed at $12.03 per share.