Robbins Arroyo LLP: Aerohive Networks, Inc. (HIVE) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that an investor of Aerohive Networks, Inc. (NYSE: HIVE) has filed a class action complaint in the Superior Court of the State of California, County of San Mateo. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1933. Aerohive designs and develops cloud-managed mobile networking platform that enables enterprises to deploy a mobile-centric network edge in the U.S. and internationally.
Aerohive’s Initial Public Offering Was Based on False Information
According to the complaint, defendants made materially false and misleading statements in Aerohive’s Registration Statement on Form S-1 filed with the U.S. Securities and Exchange Commission, which was subsequently used for its initial public offering (“IPO”). Specifically, the Form S-1 omitted the following facts: (i) the company’s sales cycles were declining and non-current deferred revenue was increasing due to delays in new product implementation; (ii) the company had no effective “rapid customer acquisition” as stated in its Form S-1 as conflicts between personnel led to a decline of staffing; (iii) the company was booking as revenue fake “sales” to meet unreasonable revenue projections and make up for sales shortfalls in violation of its internal controls and inconsistent with accounting principles; (iv) the company was experiencing significant turnover in staff due to bad relations and widespread internal disappointment over failed promises and expectations for compensation associated with the IPO; and (v) the company was experiencing a decline in sales due to an increase in competition.
Aerohive’s stock plummeted when the company revealed a drop in sales revenues due in significant part to the fact that the aforementioned information was not disclosed in the company’s Form S-1. Since the IPO on March 27, 2014, Aerohive’s stock has declined over 30%.
Aerohive 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.