SAN FRANCISCO, Aug. 16, 2024 (GLOBE NEWSWIRE) — Hagens Berman urges Extreme Networks, Inc. (NASDAQ: EXTR) investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may assist the investigation to contact its attorneys.
Class Period: July 27, 2022 – Jan. 30, 2024
Lead Plaintiff Deadline: October 15, 2024
Visit: www.hbsslaw.com/investor-fraud/extr
Contact the Firm Now: EXTR@hbsslaw.com
844-916-0895
Extreme Networks, Inc. (EXTR) Securities Class Action:
Extreme Networks, Inc. (EXTR) is under fire from investors who allege the company misled them about its financial performance. A class-action lawsuit has been filed, claiming the networking equipment provider painted a rosy picture of robust organic growth, a substantial backlog, and market share gains that would fuel record revenues.
The complaint contends that Extreme Networks’ public statements masked a deteriorating business environment. The company allegedly overstated its organic demand, relying heavily on backlog orders to inflate revenue figures. It is further alleged that the company downplayed the rapid erosion of its backlog while misleading investors about its true growth trajectory.
The cracks in Extreme Networks’ facade began to emerge in January 2023 with the resignation of its CFO and a subsequent earnings report that revealed a decline in backlog and book-to-bill ratios. Despite these warning signs, management assured investors that the backlog would remain stable.
However, subsequent disclosures painted a more dire picture. In August 2023, the company reported a staggering $245 million decline in backlog over the past year.
Then, in November 2023, Extreme Networks acknowledged an “air pocket of demand” as it worked through its backlog.
More recently, in January 2024, Extreme Networks slashed its revenue forecasts, citing channel inventory issues and weaker-than-expected demand.
Each of these events drove the price of Extreme Networks shares sharply lower, wiping out significant shareholder value. Law firm Hagens Berman is investigating whether the company’s actions constitute securities fraud.
“We are examining whether Extreme Networks misled investors about the health of its business,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Extreme Networks and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Extreme Networks case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding Extreme Networks should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email EXTR@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
