NEW YORK, May 31, 2013 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Aruba Networks, Inc. ("Aruba" or the "Company") (NASDAQ: ARUN).
The investigation focuses on whether Aruba made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, the investigation focuses on whether the Company failed to disclose that: (i) Aruba did not hold a competitive advantage over Cisco Systems, Inc. ("Cisco"); (ii) Aruba was aware of the deficiencies in its marketing abilities considering the "bundling" advantages that Cisco had over the Company; and (iii) Cisco's bundling practices would greatly weaken Aruba's market share and overall success rate in completing contracts with clients.
On May 7, 2013, Aruba announced its third quarter 2013 preliminary results, and decreased its prior revenue guidance from $159 to $161 million to $144 to 147 million. Following this news, the Company's shares dropped $5.03 per share or nearly 23%, to close at $17.02 per share.
On May 16, 2013, Aruba announced in a press release financial results for the third quarter 2013, which reported Non-GAAP net income of $14 million or $0.11 per diluted share, well below analysts' expectations. Although Aruba's pre-Class Period statements downplayed the effect of Cisco's bundling capabilities on the Company's profits, Aruba attributed its negative results on "a heightened level of competition and bundling strategy from our largest competitor [Cisco]." The Company's stock decreased $4.51 per share or almost 26%.
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If you invested in Aruba stock or options between May 17, 2012 and May 16, 2013 and would like to discuss your legal rights, visit www.faruqilaw.com/ARUN. You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com or firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding Aruba's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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