SAN DIEGO, June 22, 2015 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit was filed on behalf of certain purchasers of shares of Aerohive Networks Inc (NYSE:HIVE) over alleged Violations of Federal Securities Laws by Aerohive Networks Inc in connection with Aerohive Networks’ initial public offering (“IPO”) on March 27, 2014.
Investors who purchased shares of Aerohive Networks Inc (NYSE:HIVE), have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff claims that defendants made certain materially false and misleading statements in Aerohive Networks’ Registration Statement on Form S-1 filed with the U.S. Securities and Exchange Commission, which was subsequently used for its IPO. More specifically, the plaintiff claims that Form S-1 allegedly omitted that Aerohive Networks’ sales cycles were declining and non-current deferred revenue was increasing due to delays in new product implementation, that Aerohive Networks Inc had no effective "rapid customer acquisition" as stated in its Form S-1 as conflicts between personnel led to a decline of staffing, that Aerohive Networks Inc 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, that Aerohive Networks Inc 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 that Aerohive Networks Inc was experiencing a decline in sales due to an increase in competition.
On October 13, 2014, Aerohive Networks Inc reported its preliminary financial results for the third quarter of fiscal year 2014 ended September 30, 2014. Among other things, Aerohive Networks Inc announced expected revenue for the third quarter to be approximately $34.5 million to $35.5 million, which was below the Company’s previously stated guidance of $38 million to $40 million, and an anticipated third quarter net loss per share in the range of $0.18 to $0.16, compared with the Company’s previously stated guidance of $0.16 to $0.14.
Shares of Aerohive Networks Inc (NYSE:HIVE) declined from $10.50 per share in April 2014 to as low as $3.43 per share on February 12, 2015.
Those who purchased Aerohive Networks Inc (NYSE:HIVE) shares have certain options and should contact the Shareholders Foundation, Inc. by e-mail at mail@shareholdersfoundation.com or call +1 (858) 779-1554.
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.