Haeggquist & Eck Investigates Breach of Fiduciary Duties by Ubiquiti Networks’ Officers & Directors Regarding Citron Report...
December 11 2017 - 10:00AM
Business Wire
Haeggquist & Eck, LLP, a leading shareholder rights
litigation firm, is investigating whether certain directors and
officers of Ubiquiti Networks, Inc. (“Ubiquiti” or the “Company”)
(NASDAQ: UBNT) breached their fiduciary duties to the Company and
its shareholders. If you are an Ubiquiti shareholder, you are
encouraged to contact Haeggquist & Eck for additional
information.
Ubiquiti develops networking technology for service providers,
enterprises, and consumers worldwide. The Company does not employ a
traditional sales force. Instead, it states that it “drives brand
awareness largely through the company’s user community where
customers can interface directly with R&D, marketing, and
support.” The Company calls this user community the “Ubiquiti
Community.”
Specifically, the investigation relates to a September 18, 2017
report published by Citron Research, which alleges that Ubiquiti is
a “total fraud.” The report details a series of “alarming red
flags” and indicates that the Company has been deceiving investors
by: (1) misrepresenting the size of its purported “Ubiquiti
Community” distribution network; (2) misstating critical operating
metrics, including net income margins, to conceal poor financial
operating results; and (3) misstating the levels of its account
receivables.
The report also alleges red flags based on Ubiquiti’s corporate
turnover and corporate culture. Following this news, shares of
Ubiquiti fell $4.33 per share or over 7%, damaging the company and
investors.
What You Can Do
If you are an Ubiquiti shareholder, you may have legal claims
against Ubiquiti’s directors and officers. If you wish to discuss
this investigation, or have questions about this notice or your
legal rights, please call attorney Amber Eck at 619-342-8000 or
e-mail her at ambere@haelaw.com. There is no cost or obligation to
you.
Haeggquist & Eck, LLP is a nationally recognized leader in
shareholder rights law. The firm represents individual investors in
shareholder derivative lawsuits, and members of the firm have
helped shareholders recover more than $1 billion of value for
themselves and the companies in which they have invested.
This release constitutes attorney advertising. Past results do
not guarantee a similar outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20171211005032/en/
Haeggquist & Eck, LLPAmber Eck,
619-342-8000ambere@haelaw.com
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