A10 Networks, Inc.
Robbins Arroyo LLP: A10 Networks, Inc. (ATEN) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that an investor of A10 Networks, Inc. (NYSE: ATEN) has filed a federal securities fraud class action complaint in the Superior Court of the State of California, County of Santa Clara. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1933 in relation to A10’s initial public stock offering (“IPO”) on March 21, 2014. A10 provides software based application networking solutions internationally.
A10 Misrepresents Its Business Practices
Since the company’s March 21, 2014 IPO, A10 stock has dropped from $15 to $4.93 per share as of February 9, 2015, representing a 67% decrease since the IPO. According to a recently filed class action complaint, the stark decrease in A10 stock is a direct result of the company’s failure to disclose certain known facts regarding the financial condition of the company at the time of the IPO, including that: (i) A10’s 2013 sales growth had been substantially augmented by customers converting from its AX Series to the Thunder Series; (ii) A10 was experiencing lower revenue bookings from its North American service provider customers; (iii) A10 was facing longer sales closing cycles than it had historically; (iv) A10 lacked sufficient engineering staff to timely close sales and did not have sufficient management oversight and involvement in sales; (v) had a bloated inventory with obsolete products due to the transition from its AX Series to the Thunder Series, which should have been written off earlier causing A10 to overstate its present assets and understate its pre-IPO net losses in its Registration Statement filed with the U.S. Securities and Exchange Commission; (vi) A10 was not on track to achieve the financial results the Registration Statement stated the company would achieve; and (vii) A10 lacked effective reporting controls over its inventory.
A10 Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.