WILMINGTON, Del., Oct. 27, 2015 /PRNewswire/ -- Rigrodsky & Long, P.A.:
- Do you, or did you, own shares of Extreme Networks Inc. (NASDAQ: EXTR)?
- Did you purchase your shares between November 4, 2013 and April 9, 2015?
- Did you lose money in your investment?
Rigrodsky & Long, P.A. announces that a class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of all persons or entities that purchased the common stock of Extreme Networks Inc. ("Extreme Networks" or the "Company") (NASDAQ: EXTR) between November 4, 2013 and April 9, 2015 inclusive (the "Class Period"), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the "Complaint").
The Complaint alleges that during the Class Period, defendants issued materially false and misleading public statements, and/or failed to disclose material information concerning Extreme Networks' current financial condition and outlook for fiscal 2015, including, among other things, that the Company's revenue growth was dependent on the successful integration of Enterasys Networks, Inc. ("Enterasys"), which was acquired in 2013, but that such integration had not been successful, materially impairing the Company's ability to address persisting sales problems. In addition, defendants failed to disclose that while Extreme Networks had an alliance with Lenovo during the Class Period, defendants did not have sufficient visibility into Lenovo's server business plans to support the Company's quarterly and fiscal 2015 financial forecasts. As a result of these misrepresentations and/or omissions, Extreme Networks' stock traded at artificially inflated prices during the Class Period.
On April 9, 2015, after the markets closed, the Company preannounced that it would miss guidance for the third quarter of 2015, reporting revenue of $118-$120 million, significantly below prior guidance of $130-$140 million, and earnings per share of ($0.09)-($0.07), compared to the Company's prior guidance of ($0.03)-$0.02 per share. The Company also announced that trading in its shares had been halted and its Chief Revenue Officer, Jeff White, who had been hired six months earlier to integrate the Extreme Networks' and Enterasys' salesforces, was "no longer with the Company." On this news, Extreme Networks' stock price fell from a close of $3.24 per share on April 9, 2015 to a close of $2.50 per share on April 10, 2015.
If you wish to serve as lead plaintiff, you must move the Court no later than December 22, 2015. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice. One of the key factors in selecting the lead plaintiff is the size of the loss. The larger the size of your economic loss, the greater the likelihood that you may be appointed to serve as lead plaintiff. Alternatively, you may choose to do nothing and remain an absent class member.
If you purchased shares of Extreme Networks during the Class Period, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 2 Righter Parkway, Suite 120, Wilmington, DE 19803 at (888) 969-4242; by e-mail at [email protected]; or at: http://rigrodskylong.com/investigations/extreme-networks-extr.
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SOURCE Rigrodsky & Long, P.A.