NEW YORK, Oct. 6, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Ubiquiti Networks, Inc. ("Ubiquiti" or the "Company") (NASDAQ: UBNT).
The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) the Company's product sales were suffering from widespread counterfeit goods; (2) the Company's operations were under increased risk due to Ubiquiti's unique business model, whereby it relied exclusively upon distributors to sell its products to end customers; and (3) the Company lacked the proper internal controls to prevent its product designs from being stolen and replicated.
On May 1, 2012, after announcing disappointing third quarter fiscal year 2012 financial results, the Company acknowledged that a former distributor of Ubiquiti's had appropriated source codes and branded designs for the Company's popular and profitable AirMax line of products and was engaged in a scheme to manufacture and distribute counterfeit Ubiquiti products in direct competition with the Company. On this news, Ubiquiti stock declined $6.10 per share to close at $28.90 per share on May 2, 2012. Thereafter, on August 9, 2012, Ubiquiti announced its fourth quarter fiscal 2012 financial results and announced disappointing guidance for the first quarter of fiscal 2013, admitting that the distribution of the unauthorized copies of its AirMax products was more widespread than previously disclosed and would have a detrimental impact on the Company's future results. As a result of this news, Ubiquiti stock declined $6.30 per share to close at $8.71 per share on August 10, 2012, a one-day decline of nearly 42%.
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If you purchased Ubiquiti stock or options between October 14, 2011 and August 9, 2012 and would like to discuss your legal rights, visit www.faruqilaw.com/UBNT. 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 firstname.lastname@example.org or email@example.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Ubiquiti's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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FARUQI & FARUQI, LLP
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Attn: Richard Gonnello, Esq.
Francis McConville, Esq.
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