Extreme Networks Inc Is Being Sued For Potentially Violating Securities Laws And Affected Investors Are Invited To Reach Out
The Schall Law Firm has announced a class action lawsuit against Extreme Networks, Inc. (NASDAQ:EXTR) for alleged violations of securities laws. The lawsuit covers investors who purchased Extreme Networks securities between July 27, 2022, and January 30, 2024. The complaint alleges that the company made false and misleading statements about client demand trends and backlog orders. Specifically, it claims Extreme Networks faced weak demand due to customers over-ordering during the COVID-19 pandemic and attempted to offset this by misrepresenting backlog orders. Affected investors are encouraged to contact the firm before October 15, 2024, to participate in the case.
Lo studio legale Schall ha annunciato una class action contro Extreme Networks, Inc. (NASDAQ:EXTR) per presunti violazioni delle leggi sui titoli. La causa riguarda gli investitori che hanno acquistato titoli di Extreme Networks tra il 27 luglio 2022 e il 30 gennaio 2024. Il reclamo sostiene che l'azienda ha fatto dichiarazioni false e fuorvianti riguardo alle tendenze della domanda dei clienti e agli ordini in backlog. In particolare, si afferma che Extreme Networks ha affrontato una domanda debole a causa di ordini eccessivi da parte dei clienti durante la pandemia di COVID-19 e ha tentato di compensare ciò misrepresentando gli ordini in backlog. Gli investitori interessati sono incoraggiati a contattare lo studio legale prima del 15 ottobre 2024 per partecipare al caso.
El bufete de abogados Schall ha anunciado una demanda colectiva contra Extreme Networks, Inc. (NASDAQ:EXTR) por supuestas violaciones de las leyes de valores. La demanda abarca a los inversores que compraron valores de Extreme Networks entre el 27 de julio de 2022 y el 30 de enero de 2024. La queja alega que la empresa realizó declaraciones falsas y engañosas sobre las tendencias de demanda de los clientes y los pedidos pendientes. Específicamente, sostiene que Extreme Networks enfrentó una débil demanda debido a pedidos excesivos por parte de los clientes durante la pandemia de COVID-19 e intentó compensar esto tergiversando los pedidos pendientes. Se anima a los inversores afectados a contactar con el bufete antes del 15 de octubre de 2024 para participar en el caso.
샬 법률 사무소는 Extreme Networks, Inc. (NASDAQ:EXTR)에 대해 증권법 위반 혐의로 집단 소송을 제기했다고 발표했습니다. 이 소송은 2022년 7월 27일부터 2024년 1월 30일 사이에 Extreme Networks의 증권을 구매한 투자자들을 포함합니다. 고소장에는 회사가 고객 수요 동향 및 백로그 주문에 대해 잘못된 정보와 오해의 소지가 있는 주장을 했다는 내용이 기재되어 있습니다. 특히, Extreme Networks는 COVID-19 팬데믹 동안 고객들이 초과 주문을 하여 수요가 약했으며, 이를 백로그 주문을 왜곡하여 상쇄하려 했다고 주장합니다. 영향받은 투자자는 2024년 10월 15일 이전에 법무법인에 연락하여 사건에 참여할 것을 권장받고 있습니다.
Le cabinet d'avocats Schall a annoncé une action collective contre Extreme Networks, Inc. (NASDAQ:EXTR) pour des violations présumées des lois sur les valeurs mobilières. Le procès couvre les investisseurs qui ont acheté des titres d'Extreme Networks entre le 27 juillet 2022 et le 30 janvier 2024. La plainte prétend que l'entreprise a fait de fausses déclarations et des déclarations trompeuses concernant les tendances de la demande des clients et les commandes en attente. Plus précisément, il est affirmé qu'Extreme Networks a été confrontée à une demande faible en raison de commandes excessives de la part des clients pendant la pandémie de COVID-19 et a tenté de compenser cela en déformant les commandes en attente. Les investisseurs affectés sont encouragés à contacter le cabinet avant le 15 octobre 2024 pour participer à l'affaire.
Die Schall Rechtsanwaltskanzlei hat eine Sammelklage gegen Extreme Networks, Inc. (NASDAQ:EXTR) wegen angeblicher Verstöße gegen das Wertpapierrecht angekündigt. Die Klage betrifft Investoren, die zwischen 27. Juli 2022 und 30. Januar 2024 Wertpapiere von Extreme Networks erworben haben. Die Beschwerde behauptet, dass das Unternehmen falsche und irreführende Aussagen über die Nachfragentwicklung bei Kunden und über Rückstandsbestellungen gemacht hat. Konkret wird behauptet, dass Extreme Networks aufgrund von Überbestellungen der Kunden während der COVID-19-Pandemie eine schwache Nachfrage hatte und versuchte, dies durch falsche Darstellungen von Rückstandsbestellungen auszugleichen. Betroffene Investoren werden ermutigt, sich vor 15. Oktober 2024 mit der Kanzlei in Verbindung zu setzen, um am Verfahren teilzunehmen.
- None.
- Extreme Networks faces a class action lawsuit for alleged securities law violations
- The company is accused of making false and misleading statements about client demand trends
- Allegations of misrepresenting backlog orders to offset weak organic demand
- Potential financial and reputational damage due to the lawsuit
Insights
This class action lawsuit against Extreme Networks raises significant concerns for investors. The allegations of false and misleading statements regarding customer demand and backlog orders are particularly troubling. If proven true, this could indicate a serious breach of securities laws, potentially leading to substantial financial penalties and reputational damage for the company.
The lawsuit's focus on the period from July 27, 2022 to January 30, 2024 suggests a prolonged period of alleged misconduct. This timeframe coincides with the post-COVID recovery phase, where many tech companies faced challenges in accurately forecasting demand. However, deliberately misrepresenting backlog orders to offset negative organic demand trends, if proven, goes beyond mere forecasting errors.
Investors should closely monitor this case, as its outcome could significantly impact Extreme Networks' financial stability and stock performance. The October 15, 2024 deadline for affected investors to join the lawsuit is important for those seeking potential compensation.
The allegations against Extreme Networks highlight potential inventory management issues and revenue recognition concerns. If the company indeed inflated its backlog orders to mask weak demand, it could lead to future revenue shortfalls and inventory write-downs. This situation might result in earnings restatements and negatively impact the company's financial metrics.
Investors should scrutinize Extreme Networks' recent financial reports, paying close attention to revenue growth patterns, inventory levels and cash flow statements. Any discrepancies or sudden changes in these areas could corroborate the lawsuit's claims. Additionally, the potential financial impact of legal settlements or judgments should be factored into any valuation models for the company.
The market's reaction to this news and any subsequent disclosures will be critical. A loss of investor confidence could lead to increased volatility in the stock price and potentially higher borrowing costs for the company.
LOS ANGELES, CA / ACCESSWIRE / September 5, 2024 / The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Extreme Networks, Inc. ("Extreme Networks" or "the Company") (NASDAQ:EXTR) for violations of 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
Investors who purchased the Company's securities between July 27, 2022 and January 30, 2024, inclusive (the "Class Period"), are encouraged to contact the firm before October 15, 2024.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at bschall@schallfirm.com.
The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
According to the Complaint, the Company made false and misleading statements to the market. Extreme Networks suffered from weak client demand trends due to customers ordering more product than necessary in the wake of the COVID-19 pandemic. The Company attempted to offset the negative organic demand trends with backlog orders exceeding the proportion it represented to investors. Based on these facts, the Company's public statements were false and materially misleading throughout the class period. When the market learned the truth about Extreme Networks, investors suffered damages.
Join the case to recover your losses.
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.
310-301-3335
info@schallfirm.com
www.schallfirm.com
SOURCE: The Schall Law Firm
View the original press release on accesswire.com
FAQ
What is the class action lawsuit against Extreme Networks (EXTR) about?
When is the deadline for investors to join the Extreme Networks (EXTR) class action lawsuit?
What specific allegations are made against Extreme Networks (EXTR) in the lawsuit?
How might the class action lawsuit affect Extreme Networks (EXTR) and its investors?
