RM LAW Announces Class Action Lawsuit Against Ubiquiti Networks, Inc.

BERWYN, Pa., Feb. 27, 2018

Ubiquiti shareholders may, no later than April 23, 2018, move the Court for appointment as a lead plaintiff of the Class.  If you purchased shares of Ubiquiti and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.

Ubiquiti offers a portfolio of wireless networking products and solutions. The Company does not employ a traditional sales force, "but instead drives brand awareness largely through the company's 'user community' where customers can interface directly with R&D, marketing, and support."

The complaint alleges that Ubiquiti and certain of its executive officers made a series of false and misleading statements to investors during the Class Period and failed to disclose: (i) that the size of the Company's purported user community was drastically overstated; (ii) that the Company had exaggerated its publicly reported accounts receivable; and (iii) that as a result of the foregoing, Ubiquiti's publicly disseminated financial statements were materially false and misleading.

On February 20, 2018, Ubiquiti disclosed that, "[o]n February 13, 2018, the Securities and Exchange Commission (the 'SEC') issued subpoenas to Ubiquiti Networks, Inc. (the 'Company') and certain of the Company's officers requesting documents and information relating to a range of topics, including metrics relating to the Ubiquiti Community, accounting practices, financial information, auditors, international trade practices, and relationships with distributors and various other third parties."

Following this news, shares of the Company's stock declined $18.76 per share, or over 25%, to close on February 20, 2018 at $55.28 per share, on heavy trading volume.