NEW YORK, May 29, 2024 (GLOBE NEWSWIRE) — The law firm of Kirby McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of those who acquired Equinix, Inc. (“Equinix” or the “Company”) (NASDAQ: EQIX) securities during the period of May 3, 2019 through March 24, 2024, inclusive (“the Class Period”). Investors have until July 1, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
[Click here to learn more about the class action]
On March 20, 2024, Hindenburg Research released a report on Equinix entitled “Equinix Exposed: Major Accounting Manipulation, Core Business Decay And Selling an AI Pipe Dream As Insiders Cashed Out Hundreds of Millions.” The Hindenburg Report alleged that Equinix manipulated its profit margin and its Adjusted Funds From Operations (“AFFO”) by misclassifying typical operational expenses, or maintenance CapEx, as growth CapEx. In addition, the report alleged that Equinix relied on an undisclosed and highly risky approach to grow its revenue by overselling power capacity in the hope that customers would not use all of the power, a method that could result in facility outages and a failure to fulfill contractual obligations. On this news, the price of Equinix shares declined by $19.70 per share on March 20, 2024 to close at $824.88. The next day, it declined a further $13.24, to close at $811.64.
On March 25, 2020, before the market opened, the Company filed with the Securities and Exchange Commission (“SEC”) a current report on Form 8-K accompanied by a press release which stated that the Company’s Audit Committee had commenced an independent investigation to review the matters referenced in a short seller report. On this news, the price of Equinix shares declined by $8.45 per share, to close at $792.52 on March 25, 2024.
The lawsuit alleges that Equinix throughout the Class Period made materially false and/or misleading statements and/or failed to disclose that the Company: (1) manipulated its financials to reduce operational expenses and boost AFFO; (2) oversold power capacity and did not warn of the risks associated with this practice; and (3) lacked adequate internal controls.
If you purchased or otherwise acquired Equinix securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this CONTACT FORM, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
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