SAN DIEGO and CALABASAS, Calif., Nov. 19, 2013 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of Ixia (NASDAQ: XXIA) has filed a federal securities fraud class action complaint in the U.S. District Court for the Central District of California. The complaint alleges that the company and certain of its officers violated the Securities and Exchange Act of 1934 between April 29, 2010 and October 24, 2013 (the "Class Period"). Ixia provides converged Internet Protocol network validation and network visibility solutions that are used to design, verify, and monitor Ethernet, Wi-Fi, and 3G/LTE equipment and networks.
Shares of Ixia fell $1.94, or 9%, to close at $18.37 on April 4, 2013, following Ixia's announcement that it identified an error in the company's revenue recognition practices, requiring the company to restate its financial results for the 2010 and 2011 fiscal years and each fiscal quarter ended March 31, 2011 through September 30, 2012. Ixia's shares fell an additional $0.78 or, 5%, after Ixia announced on October 24, 2013, that its President, CEO, and member of the board of directors, Victor Alston, resigned after it had been determined that he had misstated his academic credentials, age and early employment history.
According to the complaint, Ixia made false and misleading statements and/or failed to disclose material adverse facts about the company's business prospects and financial condition. In particular, the complaint alleges that, throughout the Class Period, Ixia improperly recognized revenues related to its warranty and software maintenance contracts. In addition, the complaint alleges that Ixia failed to maintain adequate internal and financial controls leading the company to release false and misleading statements.
Ixia Shareholders Are Encouraged to Contact Shareholder Rights Law Firm Robbins Arroyo
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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