EXTR DEADLINE NOTIFICATION: Extreme Networks, Inc. Investors have until October 15 before the court deadline expires and are advised to contact BFA Law

Investors have until October 15, 2024, to ask the court to be appointed to preside over the case. The complaint alleges claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Extreme common stock. The case is pending in the U.S. District Court for the Northern District of California and is titled Steamfitters Local 449 Pension and Retirement Funds v. Extreme Networks, Inc.No. 24-cv-05102.

What is the lawsuit about?

The complaint alleges that Extreme exaggerated the strong demand for its products and that its record backlog would accelerate growth. In reality, it alleges that demand for Extreme’s products declined because its customers ordered more products than needed in the wake of the COVID-19 pandemic to avoid supply shortages. As a result, the backlog cannibalized growth rather than accelerating it.

On January 25, 2023, Extreme announced the resignation of the company’s CFO, as well as a significant decrease in the company’s order book. This news caused Extreme’s stock price to drop by $2.81 per share, or nearly 15%, to close at $16.50 per share on January 25, 2023.

On November 1, 2023, Extreme reported its 1Q24 financial results. In connection with the results, Extreme revealed that clearing its backlog had created a “demand bubble” among end customers, resulting in a “more subdued” revenue growth outlook of “mid-to-high single digits” for FY24, and that Extreme now expected a normalized backlog of between $75 million and $100 million “by the end of Q4 fiscal ’24.” This news caused Extreme’s stock price to fall $2.76 per share, or more than 13%, to close at $17.86 per share on November 1, 2023.

Then, on January 31, 2024, Extreme reported disappointing financial results and operating trends for 2Q24. Extreme further revealed that its product backlog had already normalized during the quarter and that the company had made the “conscious decision to exit channel digestion in the March quarter.” This news caused Extreme’s stock price to drop by $4.05 per share, or over 24%, to close at $12.59 per share on February 2, 2024.

Click here if you have suffered a loss: https://www.bfalaw.com/cases-investigations/extreme-networks-inc.

What can you do?

If you have invested in Extreme, you have rights and are encouraged to submit your information to speak with an attorney.

All representation is on a no cure no pay basis, it costs you nothing. Shareholders are not responsible for any legal costs or litigation expenses. The company will seek court approval for any costs and expenses. You can submit your details via:

https://www.bfalaw.com/cases-investigations/extreme-networks-inc

Why Bleichmar Fonti & Auld LLP?

Bleichmar Fonti & Auld LLP is a leading global law firm representing plaintiffs in securities class action lawsuits and shareholder lawsuits. It was named one of the Top 5 Plaintiffs’ Law Firms for 2023 by ISS SCAS and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and Thompson Reuters. Among its recent notable successes, BFA has recovered over $900 million in equity from the board of directors of Tesla, Inc. (pending court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.

For more information about BFA and its attorneys, visit https://www.bfalaw.com.

https://www.bfalaw.com/cases-investigations/extreme-networks-inc

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To view the source version of this press release, go to https://www.newsfilecorp.com/release/220083

The Extreme Networks stock at the time of publication of the news was down by -0.78 % to 13.44US dollar on the Tradegate exchange (August 16, 2024, 4:09 p.m.).