A10 Networks, Inc. Securities Class Action
A securities fraud class action has been initiated against A10 Networks, Inc. (NYSE: ATEN). The lawsuit is on behalf of purchasers of the securities of A10 Networks between February 9, 2016 and January 30, 2018 (“Class Period”). The lawsuit seeks to recover damages for A10 Networks investors under the federal securities laws. Complete the Follow-Up Form below to join the action or request more information. You may also contact David P. Abel, Managing Attorney of USMA Law Group to discuss this matter at no obligation or cost: 202-274-0237; email@example.com.
USMA Law Group has independently investigated A10 Networks and believes the class action complaint has merit. Following are summary findings from the investigation and lawsuit.
A10 Networks is a provider of software and hardware solutions. The Company’s solutions enable its customers to secure and optimize the performance of their data center and cloud applications, and secure their users, applications and infrastructure from Internet, Web and network threats at scale. The Company offers a portfolio of hardware, software and cloud offerings. Its customers include cloud providers, Web-scale companies, service providers, government organizations and enterprises. The Company’s portfolio consists of six application delivery and security products, including Application Delivery Controllers, Lightning Application Delivery Service, Carrier Grade Network Address Translation, Threat Protection System, SSL Insight and Convergent Firewall.
Class Action Allegations
According to the lawsuit, throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) A10 Networks had issues with its internal controls that required an Audit Committee investigation; (2) A10 Networks’ revenues since the fourth quarter of 2015 were false due to improper revenue recognition which prompted an investigation by the Company’s Audit Committee; and (3) as a result, Defendants’ public statements were materially false and misleading at all relevant times.
Timeline of Significant Events
On January 16, 2018, A10 Networks disclosed it expected fourth quarter 2017 revenue to be between $55.5 million and $56 million, which was significantly below the Company’s prior guidance of $64 million to $67 million. On this news, shares of A10 Networks fell $0.99 or over 13% from its previous closing price to close at $6.32 per share on January 17, 2018.
On January 30, 2018, A10 Networks disclosed that its audit committee was investigating the Company’s revenue recognition practices from the fourth quarter 2015 through the fourth quarter 2017. On this news, shares of A10 Networks fell $0.86 or over 12% from its previous closing price to close at $6.13 per share on January 31, 2018.
On March 16, 2018, A10 Networks disclosed that it will continue to delay the filing of the Company’s Annual Report beyond its due date. The Company reiterated that the audit committee, is conducting an investigation regarding certain revenue recognition and internal control matters. The investigation is focused on the time period of between fourth quarter 2015 and fourth quarter 2017. A10 Networks stated the audit committee has not reached any conclusions because the investigation is ongoing.
USMA Law Group is additionally investigating whether consolidation of A10 Networks’ regional partners has impacted sales. A10 Networks has also recently gone through sales team changes. And whether customer concentration is affecting results as it has in the past is an area of consideration.
|Headquarters||San Jose, CA||52 Week High-Low Range||$9.75 / $5.70|
|Investigation Period||Feb. 9, 2016 - Present||Free Float||60.2M|
|Next Earnings Report||Delayed||Internal Investigation Due||Pending|
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