Cambium Networks Corporation (NASDAQ: CMBM)

This investigation is for anyone who acquired securities in Cambium Networks Corporation (NASDAQ: CMBM) from May 8, 2023 through March 15, 2024.

The Law Offices of Howard G. Smith believes that the Company and certain of its executives violated federal law. Specifically, the Law Offices of Howard G. Smith believes that. throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the Law Offices of Howard G. Smith believes that the Company misled investors by stuffing the Company’s channels of distribution for the purpose of overstating revenue.

On October 4, 2023, Cambium Networks issued a press release announcing its preliminary results for the third quarter of 2023. Therein, the Company disclosed that it now “expects revenues of between $40.0-$45.0 million compared to the previous outlook of $62.0-$70.0 million provided on Aug. 1, 2023.” The Company attributed the downward revision to a delay in government defense orders, sluggish revenues in the Point-to-Multi-Point business, a decrease in orders and an increase in stock rotations from distributors in the Enterprise business, and “continued economic headwinds.” On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on March 15, 2024, Cambium Networks disclosed that it was updating the financial information for the quarter ended December 31, 2023, “to reflect an increase to the valuation allowance against its deferred tax assets and an increase to the loss on supplier commitments.” Additionally, the Company stated that it had identified two material weaknesses “related to the design of [its] internal controls for the accounting of excess and obsolescence reserves” and “related to the accounting interpretation and accounting for the deferred tax asset valuation allowance.” On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Cambium Networks Corporation (NASDAQ: CMBM) from May 8, 2023 through March 15, 2024 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.