Extreme Networks Must Face Pared-Down Stock-Drop suit

Law360
March 20, 2018

Partners Carol C. Villegas and Jonathan Gardner come back at Extreme Networks Inc. with more precise allegations

U.S. District Judge Beth Labson Freeman ruled Wednesday that a group of investors accusing Extreme Networks Inc. of securities fraud have made significant changes to a proposed class action that just last April was dismissed.

The suit stems from the acquisition of Enterasys Networks Inc., and alleges that Extreme misled investors as to the ease of certain systems integrations. Relying on confidential witness testimony of internal meetings, Judge Freeman found that the “integration was not ‘on track’ or ahead of plan’ but was actually ‘TBD.’”

Villegas applauded the ruling, saying, “we are very pleased with Judge Freeman’s decision and are looking forward to prosecuting this case on behalf of the Arkansas Teacher Retirement System and the class.”