About 4-5 different law firms have filed class action lawsuits (or are investigating to do so), regarding the timing of UBNT's management in announcing the counterfeiting issues that resulted in the massive drop in price earlier this year.
I think they're empty, and they aren't going to get a dime. Investing is never a guarantee, even with a great company. I think they reported the issues exactly when they should have, and continued to update investors as more news became available.
I don't see the stock price hurting in the long term over this.
Mike, the "lawyers" listed you will find in the yellow pages under Ambulance Chasers. If you take a close look, they are now desperately advertizing for a lead Plaintiff, because they have none for the November 6th deadline. A lot to do about nothing.
Class action suits are serious business. On last count there are 7 filed against ubnt. The others are fishing/investigating. This will burden ubnt with legal fees, suspect image, and management overhead. Ubnt's beefing up their legal talent earlier this year was prescient - although the rationale at that time was to go after the counterfeiters. Unfortunately, dealing with litigation is part and parcel of running a company in this country today and these experiences will serve as valuable lessons in Mr. Pera's CEO education. Ultimately, ubnt should be stronger because of this.
These sham lawyers need to read UBNT's S1. The counterfeit issue is fully disclosed... "We have in the past found and expect in the future to find counterfeit goods in the market being sold as Ubiquiti products. Although we take steps to stop counterfeits, we may not be successful and network operators and service providers who purchase these counterfeit goods may have a bad experience and our brand may be harmed."
"Dewey, Cheatem & Howe" better cover their shorts.
Dig into it a bit, you'll find the ambulance chasers are having a problem finding a strong Lead Plaintiff. That's because there isn't a tie in with buying and their allegations. Remember if they lose they pay. And if it's deemed frivolous, they pay more. In the end, if it isn't iron clad they won't follow through, and I think that will be very true in this case.