Investors Are Encouraged To Join A Case Against Extreme Networks Inc For Securities Related Infractions

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 the company's securities between July 27, 2022 and January 30, 2024. The firm encourages affected shareholders to contact them before October 15, 2024.

The complaint alleges that Extreme Networks made false and misleading statements to the market. Specifically, it claims the company faced weak client demand due to over-ordering during the COVID-19 pandemic and attempted to offset this by misrepresenting backlog orders. The lawsuit asserts that these actions led to materially false public statements throughout the class period, resulting in investor damages when the truth was revealed.

Positive

• None.

Negative

• Class action lawsuit filed against Extreme Networks for alleged securities law violations
• Accusations of false and misleading statements to the market
• Alleged weak client demand trends and misrepresentation of backlog orders
• Potential financial liability and reputational damage for the company

Insights

Legal Expert

This class action lawsuit against Extreme Networks is significant for investors. The allegations of false and misleading statements regarding customer demand and backlog orders could have substantial financial implications. Key points:

• The lawsuit covers a lengthy period from July 2022 to January 2024
• Claims of violations of securities laws, including Rule 10b-5
• Allegations that the company misrepresented demand trends and backlog orders
• Potential for financial damages to affected shareholders

While the class hasn't been certified yet, this lawsuit poses reputational and financial risks for Extreme Networks. Investors should closely monitor developments, as the outcome could impact the company's stock price and financial position. The October 15, 2024 deadline for joining the lawsuit is important for affected shareholders to consider.

Financial Analyst

This legal action raises concerns about Extreme Networks' financial reporting and demand forecasting practices. If the allegations are proven, it could indicate:

• Overstatement of market demand and potential revenue
• Inflated backlog figures that may not translate to actual sales
• Possible need for financial restatements or adjustments

Investors should scrutinize Extreme Networks' recent financial reports, particularly revenue recognition policies and backlog disclosures. The lawsuit's outcome could lead to financial penalties, increased regulatory scrutiny and a loss of investor confidence. With a market cap of $2.03 billion, any significant legal liabilities could materially impact the company's valuation and future growth prospects.

LOS ANGELES, CA / ACCESSWIRE / September 23, 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.
www.schallfirm.com
Office: 310-301-3335
info@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 and backlog orders between July 27, 2022 and January 30, 2024.

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

Shareholders who purchased Extreme Networks securities during the class period are encouraged to contact the Schall Law Firm before October 15, 2024.

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

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

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

If the allegations are proven true, investors who suffered losses during the class period may be eligible for compensation through the lawsuit.