October 29, 2015
Bernstein Liebhard LLP today announced that a securities class action has been filed in the United States District Court for the Northern District of California on behalf of a class (the “Class”) consisting of all persons or entities who purchased the common stock of Extreme Networks, Inc. (“Extreme” or the “Company”) (NASDAQ: EXTR) between November 4, 2013 and April 9, 2015 (the “Class Period”). The complaint charges Extreme and certain of its officers and directors with violations of the Securities Exchange Act of 1934.
Extreme develops and sells network infrastructure equipment and offers related services contracts for extended warranty and maintenance. The complaint alleges, among other things, that during the Class Period, defendants issued false and/or misleading statements and/or omitted adverse information concerning Extreme’s current financial condition and outlook for fiscal 2015, including, among other things, that the Company’s revenue growth depended on the successful integration of Enterasys Networks, Inc. (“Enterasys”), which Extreme had acquired in 2013 but had not successfully integrated, which materially impaired the Company’s ability to address persisting sales problems.
On April 9, 2015, after market close, Extreme preannounced 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. The Company 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 and Enterasys salesforces – was “no longer with the Company.” On these disclosures, Extreme stock price fell almost 25%, from $3.24 per share to $2.50 per share.
Plaintiffs seek to recover damages on behalf of all Class members who invested in Extreme common stock during the Class Period. If you invested in Extreme common stock as described above, and lost money on the transactions, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than December 22, 2015.
A “lead plaintiff” is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3.5 billion for its clients. The National Law Journal has recognized Bernstein Liebhard for twelve consecutive years as one of the top plaintiffs’ firms in the country.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Northern District of California.