Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, May 31, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Equinix, Inc. (NASDAQ: EQIX) investors who suffered substantial losses to contact Lesley Portnoy, Esq.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
Investors who invested between May 3, 2019 – Mar. 24, 2024 have until July 1, 2024 to participate as lead plaintiff.
Earlier this month, data center giant Equinix announced that its financial practices are aboveboard after an internal investigation cleared the company of misconduct. However, the company’s internal audit comes amid a growing storm, with serious allegations from activist short seller Hindenburg Research, a class-action lawsuit from investors, and ongoing government investigations raising doubts about Equinix's financial transparency. Hindenburg’s March 2024 report accused Equinix of manipulating a key profitability metric, adjusted funds from operations (AFFO), by misclassifying maintenance expenses. Equinix vehemently refutes these claims.
While Equinix’s most recent earnings report stated, “an independent investigation... concluded that Equinix's financial reporting is accurate,” the investigation’s internal nature has not assuaged all concerns. Critics point out that relying solely on an internal probe lacks the objectivity of a fully independent audit.
Further complicating the picture is a class-action lawsuit recently filed by investors, alleging that Equinix misled investors between May 2019 and March 2024. The lawsuit claims the company manipulated financials, oversold power capacity, and lacked adequate internal controls, all leading to inflated stock prices. These allegations track those made by Hindenburg. Adding to the uncertainty are ongoing investigations by the U.S. Attorney’s Office and the Securities and Exchange Commission (SEC) into Equinix’s accounting practices. Though Equinix is cooperating, the ongoing government investigations and the class-action lawsuit create an overhang, leaving the full picture of Equinix’s finances and prospects unclear.
The legal action asserts that the Defendants issued misleading and false statements throughout the Class Period and failed to communicate that: (1) Equinix manipulated its financials to reduce operational expenses and boost Adjusted Funds From Operations (“AFFO”); (2) Equinix oversold power capacity and did not warn of the risks associated with this practice; (3) Equinix lacked adequate internal controls; and (4) as a result, Defendants’ public statements were materially false and/or misleading at all relevant times.
Please visit our website to review more information and submit your transaction information.
The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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