Extreme Networks (EXTR) Faces Investor Lawsuit Over Alleged Financial Misrepresentation During Pandemic- Hagens Berman

/EIN News/ -- SAN FRANCISCO, Sept. 26, 2024 (GLOBE NEWSWIRE) -- Extreme Networks, Inc. (NASDAQ: EXTR), a leading cloud network equipment provider, is embroiled in a class-action lawsuit alleging that the company misled investors about its financial outlook and waning customer demand during the COVID-19 pandemic.

Hagens Berman urges Extreme investors who suffered substantial losses to submit your losses now.

Class Period: July 27, 2022 – Jan. 30, 2024
Lead Plaintiff Deadline: Oct. 15, 2024
Visit: www.hbsslaw.com/investor-fraud/extr
Contact the Firm Now: EXTR@hbsslaw.com
                                     844-916-0895

Extreme Networks, Inc. (EXTR) Securities Class Action:

The lawsuit was triggered by the company’s disclosures on January 31, 2024, when Extreme Networks’ stock nosedived by over 18% following the release of disappointing Q2 2024 financial results. The company further projected year-over-year revenue declines of up to 37% for Q3 and 24% for Q4, heightening investor anxiety.

Filed in the Northern District of California federal court, the lawsuit centers on Extreme Networks’ “backlog” metric, which is supposed to indicate client demand and expected revenue. Plaintiffs argue that the company exaggerated the strength of its backlog, concealing a drop in organic demand.

The complaint alleges that executives at Extreme Networks consistently issued misleading statements about the company’s financial health, claiming robust demand and a growing backlog. However, the lawsuit asserts that these statements were deceptive, as customers were reportedly over-ordering to avoid shortages and due to limited alternative sourcing options.

The key figures at Extreme that are named in the lawsuit include CEO Edward B. Meyercord III and former CFO Rémi Thomas, with allegations that they violated U.S. securities laws.

Hagens Berman, a prominent shareholder rights firm, is actively investigating potential claims on behalf of investors. “We are committed to uncovering the truth behind Extreme Networks’ financial disclosures,” said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you invested in Extreme Networks and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »

If you’d like more information and answers to frequently asked questions about the Extreme Networks case and our investigation, read more »

Whistleblowers: Persons with non-public information regarding Extreme Networks should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email EXTR@hbsslaw.com.

About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

Contact:
Reed Kathrein, 844-916-0895