Updated: September 04, 2018
Status: Ongoing Case
On June 28, 2016, Labaton Sucharow was appointed lead counsel in a securities fraud class action against Extreme Networks, Inc., a provider of wired and wireless network infrastructure equipment, software and services.
The lead plaintiff alleges that the defendants made false and misleading statements and omissions regarding the acquisition and integration of Enterasys Networks, Inc., a direct competitor that Extreme Networks acquired in late 2013, which doubled the size of the company. Specifically, the defendants repeatedly touted the purported benefits of the acquisition and the successful progress of the integration, reassuring investors that Extreme Networks was on track to meet its guidance and forecasts of double-digit revenue growth and a 10 percent operating margin. The lead plaintiff also alleges that the defendants made false and misleading statements regarding Extreme Networks’ partnership with Lenovo Group Ltd., the global technology giant, which they highlighted as a key driver of the company’s revenue growth.
The lead plaintiff filed an Amended Consolidated Class Action Complaint on June 2, 2017, which the defendants moved to dismiss. The court denied in part the motion on March 21, 2018. After extensive negotiations, the parties reached an agreement in principle to settle the action on September 4, 2018.
The case is In re Extreme Networks, Inc. Securities Litigation, No. 15-cv-04883-BLF (N.D. Cal.). Labaton Sucharow represents lead plaintiff Arkansas Teacher Retirement System. The defendants are Extreme Networks, Inc., and three former executives, President and CEO Charles W. Berger, CFO John T. Kurtzweil, and CFO Kenneth B. Arola.