On June 28, 2016, Labaton Keller 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. On November 30, 2018, the Parties executed the Stipulation, which sets forth the final terms and conditions of the Settlement.
The case is In re Extreme Networks, Inc. Securities Litigation, No. 15-cv-04883-BLF (N.D. Cal.). Labaton Keller 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.
Settlement Hearing
A Settlement Hearing was held on June 20, 2019, before the Honorable Beth Labson Freeman at 1:30pm in Courtroom 3, 5th Floor of the Robert F. Peckham Federal Building & United States Courthouse, 280 South 1st Street, San Jose, CA 95113.
If you have questions about the Settlement, please contact Labaton Keller Sucharow at settlementquestions@labaton.com or 1-888-218-6877, or contact the Claims Administrator, at 1-866-526-6266.
