Pomerantz Law Firm Reminds Shareholders of Ubiquiti Networks, Inc. of Upcoming
Deadline -- UBNT
NEW YORK, Nov. 2, 2012 (GLOBE NEWSWIRE) -- Shareholders of Ubiquiti Networks,
Inc. ("Ubiquiti" or the "Company") (Nasdaq:UBNT) are reminded of the
securities class action against Ubiquiti and certain of its officers. The
class action (12-cv-4801), filed in United States District Court, Northern
District of California, is on behalf of a class consisting of all persons or
entities who purchased or otherwise acquired the common stock of Ubiquiti
between October 14, 2011 and August 9, 2012, inclusive (the "Class Period"),
and/or who acquired shares of Ubiquiti common stock pursuant or traceable to
the Company's false and misleading Registration Statement and Prospectus
issued in connection with its October 14, 2011 initial public offering
("IPO"). This class action seeks to recover damages caused by Ubiquiti's
violations of the federal securities laws and to pursue remedies under
Sections 11 and 15 of the Securities Act of 1933, and Sections 10(b) and 20(a)
of the Securities Exchange Act and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Ubiquiti securities during the Class
Period, you have until November 6, 2012 to ask the Court to appoint you as
Lead Plaintiff for the Class. A copy of the Complaint can be obtained at
www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby
at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll free, x237.
Those who inquire by e-mail are encouraged to include their mailing address
and telephone number.
Ubiquiti offers a portfolio of wireless networking products and solutions,
including systems, high performance radios, antennas and management tools,
designed for wireless networking and other applications in the unlicensed
radio frequency ("RF") spectrum. The Company offers solutions that incorporate
its RF technology, antenna design and firmware technologies, which it refers
to as Air Technologies.
The Complaint alleges that, throughout the Class Period, the Company made
materially false and misleading statements regarding the Company's business
and operation. Specifically, Defendants made false and/or misleading
statements and/or failed to disclose: (i) the true magnitude of the risks the
Company faced from counterfeit goods in connection with the Company's products
including the popular and profitable AirMax; (ii) the widespread nature and
extent of the counterfeit operations and the impact the counterfeit activities
would have on the Company's future operating results; (iii) the increased
risks to the Company's operations due to its unique business model, whereby it
relied exclusively upon distributors to sell its products to end customers;
(iv) that the Company lacked the proper internal controls to prevent its
product designs from being stolen and replicated; and (v) as a result of the
above, the Company's financial statements were materially false and misleading
at all relevant times.
On or about October 14, 2011, Ubiquiti filed its Prospectus for the IPO, in
which approximately 7.038 million shares of Ubiquiti common stock were sold to
the public at $15 per share, raising $105.6 million in gross proceeds for the
Company and the selling shareholders.
On May 1, 2012, the Company announced disappointing third quarter fiscal year
2012 financial results. Ubiquity also acknowledged that one of its
distributors, Kozumi USA Corp., had stolen source codes and proprietary
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 emerging markets like South America. As a result, Ubiquiti shares
plummeted $6.10 per share, or more than 17%, to close at $28.90 per share on
May 2, 2012.
On August 9, 2012, Ubiquiti announced its fourth quarter fiscal 2012 financial
results and disappointing guidance for the first quarter of fiscal 2013.
Ubiquiti admitted that the distribution of the unauthorized copies of its
communication gear was more widespread than previously disclosed and would
have a detrimental impact on the Company's future results. As a result,
Ubiquiti shares declined $6.30 per share or nearly 42%, to close at $8.71 per
share on August 10, 2012.
The Pomerantz Firm, with offices in New York, Chicago and San Diego, is
acknowledged as one of the premier firms in the areas of corporate,
securities, and antitrust class litigation. Founded by the late Abraham L.
Pomerantz, known as the dean of the class action bar, the Pomerantz Firm
pioneered the field of securities class actions. Today, more than 75 years
later, the Pomerantz Firm continues in the tradition he established, fighting
for the rights of the victims of securities fraud, breaches of fiduciary duty,
and corporate misconduct. The Firm has recovered numerous multimillion-dollar
damages awards on behalf of defrauded investors. See www.pomerantzlaw.com.
CONTACT: Robert S. Willoughby
Pomerantz Grossman Hufford Dahlstrom & Gross LLP
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