Extreme Networks (EXTR) Tumbled 18% After Guiding For Year-Over-Year Revenue Declines, Stock Has Not Recovered - Hagens Berman

/EIN News/ -- SAN FRANCISCO, Sept. 06, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Extreme Networks, Inc. (NASDAQ: EXTR) investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may assist the investigation to contact its attorneys.

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:

A class-action lawsuit has been filed against Extreme Networks, Inc., alleging the cloud network equipment company misled investors about its financial prospects and declining customer demand during the COVID-19 pandemic.

On Jan. 31, 2024, the price of Extreme Networks shares tumbled over 18% after the company reported disappointing Q2 2024 financial results and guided for Q3 and Q4 revenue year-over-year declines of up to 37% and 24%, respectively.

The complaint, filed in the Northern District of California federal court, centers around Extreme Networks' "backlog" metric, which indicates client demand and anticipated revenue. The suit contends that the company exaggerated the strength of its backlog, concealing a decline in organic demand.

According to the complaint, Extreme Networks’ executives repeatedly made misleading statements about the company's financial health, touting strong demand and a growing backlog. However, the lawsuit alleges that these statements were false, as customers were ordering more products than they needed to avoid shortages and because they lacked alternative sourcing options.

The suit targets Extreme Networks' CEO Edward B. Meyercord III, former CFO Rémi Thomas, interim CFO Cristina Tate, and current CFO Kevin Rhodes, alleging the defendants violated the U.S. securities laws.

The class period begins on July 27, 2022, and extends through January 30, 2024, when Extreme Networks reported a significant decline in product revenue. Following these disclosures, shares of Extreme Networks experienced substantial drops, injuring investors who purchased during this window.
Prominent shareholder rights firm Hagens Berman is actively investigating investors’ potential claims.

“We’re investigating whether Extreme Networks prioritized short-term gains over transparency,” 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