Robbins Arroyo LLP: Ubiquiti Networks, Inc. (UBNT) Misled Shareholders According to Complaint




SAN DIEGO & NEW YORK–()–Shareholder rights law firm Robbins
Arroyo LLP
announces a purchaser of Ubiquiti Networks, Inc. (NASDAQ:
UBNT) has filed a complaint against the company’s officers and directors
for breaches of fiduciary duties, unjust enrichment, and waste. Ubiquiti
develops technology platforms for hi-capacity distributed Internet
access, unified information technology, and next-generation consumer
electronics for home and personal use.

View this information on the law firm’s Shareholder Rights Blog: www.robbinsarroyo.com/ubiquiti-networks-inc-mar-2018

Ubiquiti Accused of Abysmal Corporate Governance Structure

According to the complaint, Ubiquiti failed to maintain internal
controls when it shipped its products to Iran despite a United States
ban on such sales, which ultimately resulted in a violation fine.
Moreover, the Board failed to take responsibility to fix Ubiquiti’s poor
corporate governance. The continued lack of sufficient controls became
glaringly obvious when Ubiquiti failed to realize that it had been
defrauded of $46.7 million, or 10% of its cash position, until
the FBI notified the company of the fraudulent transfers. These and
other issues led the U.S. Securities and Exchange Commission to subpoena
documents from the company and certain officers in February 2019. Upon
this news, the company’s stock declined significantly, triggering a
federal securities fraud class action that can cost Ubiquiti millions to
defend, not to mention the millions in damages that the company could
owe to shareholders if found liable for the alleged wrongdoing.

Ubiquiti Shareholders Have Legal Options

If you would like more information about your rights and potential
remedies, contact attorney Leonid Kandinov at (800) 350-6003, [email protected],
or via the shareholder
information form
on the firm’s website.

Robbins Arroyo LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional investors
in shareholder derivative and securities class action lawsuits, and has
helped its clients realize more than $1 billion of value for themselves
and the companies in which they have invested.

Attorney Advertising. Past results do not guarantee a similar outcome.






Information Technology

Leave a Reply

Your email address will not be published.