SAN DIEGO, Feb. 9, 2015 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit was filed on behalf of certain purchasers of shares of A10 Networks Inc (ATEN) against A10 Networks Inc in connection with the A10 Networks' initial public stock offering ("IPO") on or about March 21, 2014.
Investors who purchased a significant amount of A10 Networks' securities (NYSE:ATEN) have certain options and for certain investors are short and strict deadlines running. Deadline: March 30, 2015. (NYSE:ATEN) investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
The plaintiff alleges that the Registration Statement contained materially misleading information and/or omitted material information, and that it was not prepared in accordance with governing rules and regulations. More specifically, the plaintiff alleges that company's registration statement emphasized A10 Networks' purportedly strong on-going sales growth rate without disclosing any then allegedly present downturn in that sales trend.
Among other things, the plaintiff alleges that one section of the registration statement allegedly concealed that a significant portion of the 2013 sales growth was due to existing customers exchanging AX series product for the newly rolled out Thunder Series product. The plaintiff says that A10 Networks Inc should have disclosed was that its 2013 sales growth had been substantially augmented by such product conversions, rather than through organic sales to new customers, and this upgrade cycle had largely extinguished itself by the time of the IPO.
The plaintiff claims that the products in the two product families are not interchangeable, and as A10 Networks' Thunder Series product sales increased and AX Series products decreased, A10 Networks Inc built up an inventory of obsolete AX Series product. The plaintiff says that despite the obsolete AX Series product on its books at allegedly inflated values, A10 Networks Inc took only a partial inventory write-down of $2.6 million at the end of fiscal 2013 and that the significant obsolete inventory allegedly remained on A10 Networks' books at allegedly inflated values at the time of the IPO.
Since the IPO shares of A10 Networks Inc (NYSE:ATEN) lost significant value and declined to as low as $3.93 per share in early December 2014.
Those who purchased shares of A10 Networks Inc (NYSE:ATEN) have certain options and should contact the Shareholders Foundation, Inc.
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.
CONTACT: Shareholders Foundation, Inc. Michael Daniels +1 (858) 779-1554 email@example.com 3111 Camino Del Rio North Suite 423 San Diego, CA 92108
Source:Shareholders Foundation, Inc.