Extreme Networks, Inc. (NASDAQ: EXTR)

This lawsuit is for anyone who acquired securities in Extreme Networks, Inc. (NASDAQ: EXTR) common stock between July 27, 2022 and January 30, 2024.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by hiding from investors that the Company’s customers had ordered more Company product than the customers could sell. The Company’s customers ordered more product from the Company than they needed for fear of shortages in the wake of the COVID pandemic.  When the Company realized that customer orders would cannibalize future sales, rather than inform investors, the Company fulfilled back orders to cover up the loss of organic sales.

On November 1, 2023, Extreme Networks released its first quarter fiscal year 2024 financial results and advised that “channel partners are digesting a large volume of backlog release and focusing on network deployment, slowing down their current ordering.” On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on January 8, 2024, Extreme Networks disclosed that its second quarter fiscal year 2024 financial results would be lower than previously expected due to “industry headwinds of channel digestion and elongated sales cycles.” On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Finally, on January 31, 2024, Extreme Networks released its second quarter fiscal year 2024 financial results, revealing a year-over-year decline in revenue. On this news, the price of the Company’s stock 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 Extreme Networks, Inc. (NASDAQ: EXTR) common stock between July 27, 2022 and January 30, 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.