Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Array, ContextLogic, and Ubiquiti and Encourages Investors to Contact the Firm
NEW YORK, May 26, 2021 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of Array Technologies, Inc. (NASDAQ: ARRY), ContextLogic Inc. (NASDAQ: WISH), and Ubiquiti, Inc. (NYSE: UI). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
Array Technologies, Inc. (NASDAQ: ARRY)
Class Period: October 14, 2020 and May 11, 2021
Lead Plaintiff Deadline: July 13, 2021
With respect to the Exchange Act claims, the Action alleges that, throughout the Class Period, defendants made false and misleading statements because they omitted and otherwise failed to disclose that, dating back to the first quarter of 2020, prices of certain commodities such as steel was in the process of more than doubling, and that Array was facing increasing freight costs. As a result of the foregoing, the Company's positive statements about its business and operations lacked a reasonable basis.
Similarly, with respect to the Securities Act claims, the Action alleges that the Offering Materials contained false and misleading statements because they omitted and otherwise failed to disclose that, prior to the Offerings, increases in commodity and freight costs had been negatively impacting the Company's business and operations.
On May 11, 2021, just months after the Offerings, the truth about these mounting costs and their negative impact on the Company's profits was revealed. On that date, Array reported first quarter 2021 results that missed profit analysts' expectations and withdrew its full-year 2021 outlook citing increases in steel and freight costs. Analysts immediately cut their ratings on Array stock citing concerns about the Company's shrinking profit margins. For example, in a Barclays report, analysts downgraded Array stock from "Overweight" to "Underweight" noting concerns about volumes, margins, and earnings power.
On this news, Array's stock priced dropped $11.49 per share, or 46.1%, to close at $13.46 per share on May 12, 2021.
The complaint alleges that, during the Class Period, defendants made materially false and misleading statements regarding the Company’s business. Specifically, defendants’ public offering materials failed to adequately disclose the then-existing rise of costs related to certain supplies such as steel, as well as the Company’s freight costs and that these were likely to have, and were having, an adverse effect on the Company’s business and operations. The complaint also alleges that defendants made materially false and/or misleading statements in press releases and conference calls because defendants omitted and otherwise failed to disclose that dating back to Q1 2020, prices of certain commodities such as steel were increasing dramatically, and that Array was facing increasing freight costs, and as a result of the foregoing, the Company’s positive statements about its business and operations lacked a reasonable basis.
On May 12, 2021, when ContextLogic announced 1Q21 financial results for the interim period ended March 31, 2021, it disclosed that its MAUs had declined another 7% to just 101 million. The Company's forward sales guidance also fell short, with its 2Q21 revenue guidance of just $715 million to $730 million coming in significantly less than the $759 million the market had been led to expect and far less than the guidance of $735 to $750 million provided for 1Q21.
On this news, the market price of ContextLogic common stock declined $3.36 per share, or 29%, to close at $8.11 per share on May 13, 2021, on unusually high trading volume.
The complaint alleges that, during the Class Period, defendants made materially false and misleading statements regarding the Company's business. Specifically, defendants' registration statement and prospectus issued in connection with the Company's initial public offering ("IPO") contained statements which were materially false and misleading because they failed to disclose and misrepresented the following adverse facts that existed at the time of the IPO: (a) that ContextLogic's 4Q20 monthly active users ("MAUs") had declined materially and were not then growing; and (b) that as a result of the foregoing, defendants materially overstated the Company's business metrics and financial prospects.
Ubiquiti develops and markets equipment and technology platforms for high-capacity Internet access, unified information technology, and consumer electronics.
On March 30, 2021, after the market closed, Krebs on Security published an article entitled “Whistleblower: Ubiquiti Breach ‘Catastrophic’” stating that the Company had downplayed a data breach from January 2021 and that the “third-party cloud provider claim was a fabrication.” According to the article, the attacker(s) had accessed “privileged credentials that were previously stored in the LastPass account of a Ubiquiti IT employee, and gained root administrator access to all Ubiquiti AWS [Amazon Web Services] accounts, including all S3 data buckets, all application logs, all databases, all user database credentials, and secrets required to forge single sign-on (SSO) cookies.” As a result, the article noted that the Company should have immediately invalidated customers’ credentials and forced a reset, rather than asking customers to change their passwords when they next log on.”
On this news, the Company’s stock price fell $50.70, or 14.5%, to close at $298.30 per share on March 31, 2021, on unusually heavy trading volume.
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants, in their statements concerning the data breach, failed to speak fully and truthfully because they failed to disclose to investors: (1) that the Company had downplayed the data breach in January 2021; (2) that attackers had obtained administrative access to Ubiquiti’s servers and obtained access to, among other things, all databases, all user database credentials, and secrets required to forge single sign-on (SSO) cookies; (3) that, as a result, intruders already had credentials needed to remotely access Ubiquiti’s customers’ systems; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
About Bragar Eagel & Squire, P.C.: Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
