Labaton Sucharow Recovers Nearly $10 Million in Securities Class Action Against Networking Technology CompanyNEW YORK (July 12, 2016) – Labaton Sucharow LLP announced today that the Firm has reached a settlement of $9,837,500 on behalf of plaintiff Arkansas Teacher Retirement System against computer networking technology company, A10 Networks, Inc. (A10), and certain of its directors, officers, and underwriters, in In re A10 Networks, Inc. Shareholder Litigation, No. 15-cv-276207, in the California Superior Court for Santa Clara County, in San Jose, California.
Led by Firm partners Joel H. Bernstein and David J. Goldsmith as co-lead counsel, the plaintiffs alleged that the offering documents for A10’s March 2014 IPO made material misstatements in violation of the federal securities laws. The offering documents allegedly misrepresented and failed to disclose that A10’s exceptionally strong revenue growth through 2013 was due significantly to existing customers’ one-time upgrades from A10’s obsolete AX series to its newly released and improved Thunder series of products, rather than organic sales to new customers, and revenues from customer upgrades had waned by the time of the IPO. The plaintiffs further alleged that the offering documents misrepresented and failed to disclose that A10’s important service provider customers in North America were saturated with product, and bookings were falling as a result. A10 announced consecutive earnings misses in Q2 and Q3 2014, its first two quarters as a public company. When the action was filed, A10’s stock was trading 70 percent below the IPO price.