Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Equinix, Inc.
March 04 2011 - 3:56PM
Business Wire
Robbins Geller Rudman & Dowd LLP (“Robbins Geller”)
(http://www.rgrdlaw.com/cases/equinixinc/) today
announced that a class action has been commenced on behalf of an
institutional investor in the United States District Court for the
Northern District of California on behalf of purchasers of Equinix,
Inc. (“Equinix”) (NASDAQ:EQIX) common stock during the period
between July 29, 2010 and October 5, 2010, inclusive (the “Class
Period”).
If you wish to serve as lead plaintiff, you must move the Court
no later than 60 days from today. If you wish to discuss this
action or have any questions concerning this notice or your rights
or interests, please contact plaintiff’s counsel, Darren Robbins of
Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at
djr@rgrdlaw.com. If you are a member of this class, you can view a
copy of the complaint as filed or join this class action online at
http://www.rgrdlaw.com/cases/equinixinc/. Any
member of the putative 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.
The complaint charges Equinix and certain of its officers and
directors with violations of the Securities Exchange Act of 1934.
Equinix is a global network-neutral provider of data centers and
Internet exchanges.
The complaint alleges that during the Class Period, defendants
issued materially false and misleading statements regarding the
Company’s business and financial results. Specifically, defendants
failed to disclose that Equinix was having difficulty with the
integration of Switch & Data Corporation Facilities Company
(acquired in April 2010) into its operations due to a decline in
bookings prior to the close of the acquisition and due to the
Company’s aggressive synergy plan. Defendants further continuously
hyped demand for the Company’s colocation services as being robust
and failed to disclose that the Company’s business model was not
working and was causing the Company to experience increased churn
and pricing pressure on its colocation services. As a result of
defendants’ false statements, Equinix’s stock traded at
artificially inflated prices during the Class Period, reaching a
high of $105.09 per share on October 5, 2010.
After the market closed on October 5, 2010, Equinix issued a
press release announcing revised third quarter and fiscal year 2010
guidance. The Company reported it expected revenue to be in the
range of $328.0 to $330.0 million for the third quarter of 2010.
The Company further reported it expected revenues for the full year
2010 to be approximately $1,215.0 million, 1.2% lower than the
midpoint of its previous outlook. In addition, the Company
announced that it would transition from a demand fulfillment
business model to a demand creation model. On this news, Equinix’s
stock collapsed $34.75 per share to close at $70.34 per share on
October 6, 2010, a one-day decline of over 33% on high volume.
Plaintiff seeks to recover damages on behalf of all purchasers
of Equinix common stock during the Class Period (the “Class”). The
plaintiff is represented by Robbins Geller, which has expertise in
prosecuting investor class actions and extensive experience in
actions involving financial fraud.
Robbins Geller, a 180-lawyer firm with offices in San Diego, San
Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and
Atlanta, is active in major litigations pending in federal and
state courts throughout the United States and has taken a leading
role in many important actions on behalf of defrauded investors,
consumers, and companies, as well as victims of human rights
violations. The Robbins Geller Web site (http://www.rgrdlaw.com)
has more information about the firm.
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