NEW YORK, Sept. 28, 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 the 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 email@example.com 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.
Robert S. Willoughby Pomerantz Grossman Hufford Dahlstrom & Gross LLP