Legal Update on Extreme Networks Class Action Lawsuit

Author: Lucas Young Updated: 09-17-2024 10:28 PM

Update on Extreme Networks Class Action Against the Company

Kahn Swick & Foti, LLC (KSF), featuring former Louisiana Attorney General Charles C. Foti, Jr., has important news for shareholders of Extreme Networks, Inc. (EXTR). If you are an investor who has incurred losses exceeding $100,000 in your investment during the specified period, you should take note of the significant upcoming deadlines regarding a securities class action lawsuit.

Class Action Participation Details

The law firm reminds individuals that the deadline to submit lead plaintiff applications is approaching quickly. Shareholders who purchased shares of Extreme Networks between July 27, 2022, and January 30, 2024, are eligible to participate. This opportunity to potentially lead the class action is crucial for asserting your rights as an investor.

How to Inquire About Your Rights

If you have been affected by the sudden decrease in Extreme Networks' share prices, you can reach out without any obligation. KSF Managing Partner Lewis Kahn is available to discuss your legal rights and prospects for recovery. He can be contacted toll-free, allowing investors to explore how they might navigate their situation effectively.

Background on the Lawsuit

Extreme Networks and some of its executives are accused of failing to provide essential financial information during the period in question, which is a breach of federal securities laws. The company's negative financial disclosures in early 2024 revealed a stark decline in performance, marking a significant concern for investors.

Recent Financial Performance Highlights

On January 31, 2024, Extreme Networks disclosed its 2Q24 results, indicating that its revenues totaled $296.4 million, reflecting a 7% decrease from the previous year. Further alarming was the revelation that the company's product revenue fell a staggering 37% year-over-year to $186.6 million. These results prompted a significant drop in the company's share price, raising questions regarding executive transparency and shareholder confidence.

Market Reaction and Implications

Following the unfortunate financial news, shares of Extreme Networks plummeted from $16.64 to $12.59 within just three trading days, a decline of over 24% on heavy trading volume. This sharp reaction underscores the gravity of the situation for investors who relied on the company's previous assurances regarding financial health.

Details of the Legal Action

The ongoing case is officially titled Steamfitters Local 449 Pension & Retirement Security Funds v. Extreme Networks, Inc. and is being heard in the United States District Court for the Northern District of California. The legal challenges continue to unfold as the parties involved prepare for the next steps in this significant litigation.

About Kahn Swick & Foti, LLC

KSF stands out as one of the leading boutique law firms specializing in securities litigation. With partners such as Charles C. Foti, Jr., the firm focuses on representing a variety of clients—from institutional investors to individuals—who are seeking redress for investment losses. KSF operates from multiple locations across the United States, including offices in New York and California.

Contact Information

For any inquiries regarding the lawsuit or to learn more about your rights as a stakeholder, please reach out to:

Kahn Swick & Foti, LLC
Lewis Kahn, Managing Partner
Email: lewis.kahn@ksfcounsel.com
Phone: 1-877-515-1850
Address: 1100 Poydras St., Suite 960
New Orleans, LA 70163

Frequently Asked Questions

What is the deadline to file as a lead plaintiff in the class action?

The deadline to file lead plaintiff applications is October 15, 2024.

Where is the lawsuit being filed?

The lawsuit is pending in the United States District Court for the Northern District of California.

What were the recent financial results of Extreme Networks?

Extreme Networks reported a 7% year-over-year decline in revenue and a 37% decrease in product revenue for 2Q24.

How much did Extreme Networks' shares drop following the last report?

Shares fell from $16.64 to $12.59, marking a 24% decline over three trading days.

Who can I contact for legal inquiries regarding this action?

You can contact Lewis Kahn at Kahn Swick & Foti, LLC, at 1-877-515-1850 or via email at lewis.kahn@ksfcounsel.com.

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