NEW YORK, June 21, 2013 (GLOBE NEWSWIRE) -- Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a class action lawsuit against Aruba Networks, Inc. ("Aruba" or the "Company") (Nasdaq:ARUN) and certain of its officers. The class action, filed in United States District Court, Northern District of California, and docketed under 13 CV 2342, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of Aruba between May 17, 2012 and May 16, 2013, both dates inclusive (the "Class Period"). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Aruba securities during the Class Period, you have until July 22, 2013 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at email@example.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Aruba Networks is a leading provider of next-generation network access solutions for the mobile networks enterprise. The company's Mobile Virtual Enterprise (MOVE) architecture unifies wired and wireless network infrastructures into one seamless access solution for corporate headquarters, mobile business professionals, remote workers and guests.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company did not hold a competitive advantage over Cisco Systems, Inc. ("Cisco"); (ii) the Company was well aware of the weaknesses in Aruba's marketing abilities given the "bundling" advantages that Cisco held over Aruba; (iii) Cisco's bundling practices would greatly undermine the Company's market share and overall success rate in signing contracts with clients; and (iv) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On May 7, 2013, the Company issued a press release announcing preliminary results for the third quarter 2013, and lowered its previously stated revenue guidance from $159 to $161 million to $144 to 147 million. On this news, Aruba's shares declined $5.03 per share or over 22%, to close at $17.02 per share on May 7, 2013.
On May 16, 2013, the Company issued a press release announcing its financial results for the third quarter 2013; reporting net income of $14 million or $0.11 per diluted share, well below analysts' expectations. On this news, Aruba's stock declined $4.51 per share or nearly 26%, to close at $13.10 per share on May 17, 2013. Despite the Company's prior Class Period statements minimizing the impact of Cisco's bundling capabilities on Aruba's profits, the Company now attributed its disappointed results on "a heightened level of competition and bundling strategy from our largest competitor [Cisco]".
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT: Robert S. Willoughby Pomerantz Grossman Hufford Dahlstrom & Gross LLP firstname.lastname@example.orgSource:Pomerantz Grossman Hufford Dahlstrom & Gross LLP