SAN FRANCISCO, June 17, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Equinix, Inc. (NASDAQ: EQIX) investors who suffered substantial losses to take action by submitting your losses now.
Class Period: May 3, 2019 – Mar. 24, 2024
Lead Plaintiff Deadline: July 1, 2024
Visit: www.hbsslaw.com/investor-fraud/EQIX
Contact the Firm Now: EQIX@hbsslaw.com | 844-916-0895
Equinix, Inc. (NASDAQ: EQIX) Class Action:
Data center giant Equinix remains embroiled in a public spat with short seller Hindenburg Research over its accounting practices. The controversy centers on Equinix’s reported Adjusted Funds from Operations (AFFO), a key profitability metric for real estate investment trusts (REITs).
Hindenburg ignited the firestorm in a March 2024 report, alleging Equinix manipulates AFFO by misclassifying essential maintenance expenditures as growth-related capital expenditures (CapEx). This tactic, according to Hindenburg, artificially inflates profitability.
Equinix responded by convening its audit committee to conduct an independent investigation. On May 7, 2024, Equinix released Q1 24 results and announced the committee’s findings, which purportedly cleared Equinix of any accounting improprieties and concluded the company’s financial reporting accurately reflects operational performance.
In a recent post on X (formerly known as Twitter), Hindenburg dismisses the internal investigation as lacking objectivity. The short seller argues the “self-investigation” lacked transparency regarding methodology and external advisors. Hindenburg also argues that Equinix continues to misrepresent its financials. Hindenburg points to concerning financial metrics in Equinix’s most recent quarterly report, like sluggish revenue growth despite high “growth” CapEx, negative free cash flow, and declining physical infrastructure usage.
Adding to Equinix’s woes, the Department of Justice (DOJ) is reportedly investigating the company’s financials. Additionally, investors have filed a class-action lawsuit mirroring Hindenburg’s claims, alleging that Equinix misled investors from May 2019 to March 2024 through financial manipulation, power capacity overselling, and inadequate internal controls, all leading to inflated stock prices.
In conjunction with the investor lawsuit, prominent shareholder rights firm Hagens Berman has commenced an investigation into Equinix’s AFFO calculations, which could potentially unearth further details.
“We’re looking into whether Equinix made their finances look better than they really are by inflating a key profit metric and exaggerating the capacity of their data centers,” said Reed Kathrein, a partner at Hagens Berman leading the firm’s investigation.
If you invested in Equinix and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now.
If you’d like more information and answers to frequently asked questions about the Equinix case and our investigation, read more.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
