Extreme Networks (EXTR) Tumbled 18% After Guiding For Year-Over-Year Revenue Declines, Stock ...
SAN FRANCISCO, Sept. 23, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Extreme Networks, Inc. (NASDAQ: EXTR) investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may assist the investigation to contact its attorneys.
Class Period: July 27, 2022 – Jan. 30, 2024
Lead Plaintiff Deadline: Oct. 15, 2024
Visit: www.hbsslaw.com/investor-fraud/extr
Contact the Firm Now: EXTR@hbsslaw.com
844-916-0895
Extreme Networks, Inc. (EXTR) Securities Class Action:
Extreme Networks, Inc., a prominent cloud network equipment company, is facing a class-action lawsuit. The suit alleges that the company misled investors about its financial prospects and the declining customer demand during the COVID-19 pandemic.
The catalyst for the suit occurred on January 31, 2024, when Extreme Networks’ stock plummeted by over 18% following the release of disappointing Q2 2024 financial results. The company also projected year-over-year revenue declines of up to 37% for Q3 and 24% for Q4, exacerbating investor concerns.
The lawsuit, filed in the Northern District of California federal court, focuses on Extreme Networks’ “backlog” metric, which is intended to reflect client demand and anticipated revenue. The plaintiffs claim that the company overstated the robustness of its backlog, thereby masking a decline in organic demand.
According to the complaint, executives at Extreme Networks repeatedly issued misleading statements about the company’s financial health, boasting of strong demand and a growing backlog. However, the lawsuit contends that these statements were deceptive, as customers were reportedly ordering more products than necessary to avoid shortages and due to a lack of alternative sourcing options.
The lawsuit names several key figures at Extreme Networks, including CEO Edward B. Meyercord III and former CFO Rémi Thomas, alleging defendants violated U.S. securities laws.
Hagens Berman, a well-known shareholder rights firm, is actively investigating potential claims on behalf of investors.
“We’re investigating whether Extreme Networks prioritized short-term gains over transparency,” said Reed Kathrein, the Hagens Berman partner spearheading the investigation.
If you invested in Extreme Networks and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Extreme Networks case and our investigation, read more»
Whistleblowers: Persons with non-public information regarding Extreme Networks should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email EXTR@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
