Haeggquist & Eck Investigates Breach of Fiduciary Duties by Ubiquiti Networks’ Officers and Directors regarding Citron Report Claiming Ubiquiti Deceived Investors and Engaged in Corporate Fraud.
San Diego – (Businesswire): Haeggquist & Eck, LLP, a leading shareholder rights litigation firm, is investigating whether certain directors and officers of Ubiquiti Networks, Inc. (“Ubiquiti” or the “Company”) (NASDAQ: UBNT) breached their fiduciary duties to the Company and its shareholders. If you are a Ubiquiti shareholder, you are encouraged to contact Haeggquist & Eck for additional information.
Ubiquiti develops networking technology for service providers, enterprises, and consumers worldwide. The Company does not employ a traditional sales force. Instead, it states that it “drives brand awareness largely through the company’s user community where customers can interface directly with R&D, marketing, and support.” The Company calls this user community the “Ubiquiti Community.”
Specifically, the investigation relates to a September 18, 2017 report published by Citron Research, which alleges that Ubiquiti is a “total fraud.” The report details a series of “alarming red flags” and indicates that the Company has been deceiving investors by (1) misrepresenting the size of its purported “Ubiquiti Community” distribution network; (2) misstating critical operating metrics, including net income margins, to conceal poor financial operating results; and (3) misstating the levels of its account receivables.
The report also alleges red flags based on Ubiquiti’s corporate turnover and corporate culture. Following this news, shares of Ubiquiti fell to $4.33 per share or over 7%, damaging the company and investors.
What You Can Do
If you are a Ubiquiti shareholder, you may have legal claims against Ubiquiti’s directors and officers. If you wish to discuss this investigation or have questions about this notice or your legal rights, please call attorney Amber Eck at (619) 342-8000. There is no cost or obligation to you.
Haeggquist & Eck, LLP is a nationally recognized leader in shareholder rights law. The firm represents individual investors in shareholder derivative lawsuits, and members of the firm have helped shareholders recover more than $1 billion of value for themselves and the companies in which they have invested.
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