Extreme Networks Inc Is Being Sued For Potentially Violating Securities Laws And Affected Investors Are Invited To Reach Out

Rhea-AI Summary

The Schall Law Firm has announced a class action lawsuit against Extreme Networks, Inc. (NASDAQ:EXTR) for alleged violations of securities laws. The lawsuit covers investors who purchased Extreme Networks securities between July 27, 2022, and January 30, 2024. The complaint alleges that the company made false and misleading statements about client demand trends and backlog orders. Specifically, it claims Extreme Networks faced weak demand due to customers over-ordering during the COVID-19 pandemic and attempted to offset this by misrepresenting backlog orders. Affected investors are encouraged to contact the firm before October 15, 2024, to participate in the case.

Positive

• None.

Negative

• Extreme Networks faces a class action lawsuit for alleged securities law violations
• The company is accused of making false and misleading statements about client demand trends
• Allegations of misrepresenting backlog orders to offset weak organic demand
• Potential financial and reputational damage due to the lawsuit

LOS ANGELES, CA / ACCESSWIRE / September 5, 2024 / The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Extreme Networks, Inc. ("Extreme Networks" or "the Company") (NASDAQ:EXTR) for violations of 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.

Investors who purchased the Company's securities between July 27, 2022 and January 30, 2024, inclusive (the "Class Period"), are encouraged to contact the firm before October 15, 2024.

If you are a shareholder who suffered a loss, click here to participate.

We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at bschall@schallfirm.com.

The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.

According to the Complaint, the Company made false and misleading statements to the market. Extreme Networks suffered from weak client demand trends due to customers ordering more product than necessary in the wake of the COVID-19 pandemic. The Company attempted to offset the negative organic demand trends with backlog orders exceeding the proportion it represented to investors. Based on these facts, the Company's public statements were false and materially misleading throughout the class period. When the market learned the truth about Extreme Networks, investors suffered damages.

Join the case to recover your losses.

The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.

CONTACT:
The Schall Law Firm
Brian Schall, Esq.
310-301-3335
info@schallfirm.com
www.schallfirm.com

SOURCE: The Schall Law Firm

View the original press release on accesswire.com

FAQ

What is the class action lawsuit against Extreme Networks (EXTR) about?

The lawsuit alleges that Extreme Networks violated securities laws by making false and misleading statements about client demand trends and backlog orders between July 27, 2022, and January 30, 2024.

When is the deadline for investors to join the Extreme Networks (EXTR) class action lawsuit?

Investors who purchased Extreme Networks securities during the specified period are encouraged to contact the Schall Law Firm before October 15, 2024, to participate in the case.

What specific allegations are made against Extreme Networks (EXTR) in the lawsuit?

The lawsuit claims that Extreme Networks faced weak client demand due to over-ordering during the COVID-19 pandemic and attempted to offset this by misrepresenting backlog orders to investors.

How might the class action lawsuit affect Extreme Networks (EXTR) and its investors?

The lawsuit could potentially result in financial and reputational damage to Extreme Networks. Investors who suffered losses during the specified period may be eligible to recover damages if the case is successful.