Extreme Networks Class ​Action Lawsuit: A Profoundly Transcendent Investor Playbook

INTRODUCTION TO THE EXTREME NETWORKS CLASS ACTION LAWSUIT

The Extreme Networks class ​action lawsuit aims to represent purchasers of Extreme Networks, Inc. (NASDAQ: EXTR) publicly traded securities stock between July 27, 2022 and January 30, 2024, inclusive (the “Class Period”).  Captioned Steamfitters Local 449 Pension & Retirement Security Funds v. Extreme Networks, Inc., No. 24-cv-05102 (N.D. Cal.), the Extreme Networks class ​action lawsuit charges Extreme Networks and certain of its top current and former executive officers with violations of the Securities Exchange Act of 1934.

If you have suffered losses in Extreme Networks stock and are interested in becoming the lead plaintiff in the Extreme Networks lawsuit or have any inquiries regarding your rights as a shareholder, please reach out to Extreme Networks Stock Loss Lawyer Timothy L. Miles at no cost. You can contact him by calling 855/846-6529, sending an e-mail to [email protected], or filling out a contact form below. Lead plaintiff motions for the Extreme Networks class ​action lawsuit must be filed with the court no later than October 15, 2024.

In this profoundly transcendent investor playbook, we will discuss in detail everything an investor need to know about the Extreme Networks class ​action lawsuit.

allegations in the Extreme Networks lawsuit

​The Extreme Networks class ​action lawsuit can be summarized as follows: 
​Extreme Networks: Global provider of cloud-based computer networking equipment and related services
• Class action lawsuit allegations:

• False/misleading statements about client demand trends
• Excessive fulfillment of backlog orders

• Key events and financial impacts:

• January 25, 2023:
  • CFO Rémi Thomas resigned
  • Backlog fell to $542 million
  • Product Book to Bill Ratio dropped from 1.3x to 0.9x
  • Service Book to Bill Ratio decreased from 1.4x to 1.2x
  • Stock impact: Share price declined by nearly 15%
• August 24, 2023:
  • Backlog further reduced to $267.3 million
  • $245 million decline year-over-year
  • $275.7 million decline in prior six months
    • Stock impact: Share price declined by approximately 9%
• November 1, 2023:
  • Revealed "air pocket of demand" due to backlog reduction
  • Lowered revenue growth outlook to "mid-to-high single digits" for fiscal year 2024
  • Projected normalized backlog of $75-100 million by end of Q4 fiscal 2024
  • Stock impact: Share price declined by approximately 13%
• January 8, 2024:
  • Lowered Q2 2024 and long-term revenue outlooks
  • Stock impact: Share price declined by approximately 7%
• January 31, 2024:
  • Q2 2024 revenues: $296.4 million (7% year-over-year decline)
  • Product revenue: $186.6 million (37% year-over-year decline)
  • Announced $40-50 million reduction in channel inventory for Q3
  • Revised fiscal year 2024 revenue expectations downward
  • Stock impact: Share price declined by approximately 24% over three trading days

Lawsuit alleges these events demonstrate misleading statements about demand and backlog management.

THE LEAD PLAINTIFF DEADLINE IN THE CLASS ACTION against Extreme Networks

​​​Lead plaintiff motions for the Extreme Networks class ​action lawsuit must be filed with the court no later than October 15, 2024.​
When a securities class action is filed such as the Extreme Networks class ​action lawsuit:

1. The person who files the first complaint is required to publish a notice announcing the filing.
2. Anyone who wants to be lead plaintiff on behalf of the class must thereafter file a motion to be appointed as lead plaintiff(s) no later than 60 days after the notice was published. 

THE LEAD PLAINTIFF PROCESS IN THE Extreme Networks CLASS ACTION LAWSUIT

​The Private Securities Litigation Reform Act of 1995 (PSLRA) permits any investor who purchased and suffered losses in Extreme Networks​​ stock to seek appointment as lead plaintiff in the Extreme Networks class ​action lawsuit.

• A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. 
• A lead plaintiff acts on behalf of all other class members in directing the class action lawsuit.
• The lead plaintiff can select a law firm of its choice to litigate the securities class action lawsuit. 
• An investor’s ability to share in any potential future recovery of the class action lawsuit is not dependent upon serving as lead plaintiff. 

THE BENEFITS OF SERVING AS A LEAD PLAINTIFF IN THE Extreme Networks CLASS ACTION LAWSUIT

1. Negotiating more competitive attorney fees and reducing litigation costs.
2. Managing the litigation by overseeing the progress of the case and reviewing important filings.
3. Participating in mediation and settlement discussions.
4. Having a voice in decision-making processes regarding the settlement.
5. No financial risk, as lead counsel covers all costs and expenses and are paid only if they secure a  settlement or judgment recovery for the class
6. Potentially enjoying long-term benefits from governance reform resulting from the litigation.

THE RESPONSIBILITIES THE LEAD PLAINTIFF WILL HAVE IN THE Extreme Networks CLASS ACTION LAWSUIT

1. Negotiating more competitive attorney fees and reducing litigation costs.​
2. Managing the litigation by overseeing the progress of the case and reviewing important filings.
3. Participating in mediation and settlement discussions.
4. Having a voice in decision-making processes regarding the settlement.
5. No financial risk, as lead counsel covers all costs and expenses and are paid only if they secure a  settlement or judgment recovery for the class
6. Potentially enjoying long-term benefits from governance reform resulting from the litigation.

ELIGIBILITY CRITERIA FOR LEAD PLAINTIFF APPOINTMENT

​​To be eligible for appointment as the lead plaintiff in the Extreme Networks class ​action lawsuit, an investor must meet the following criteria:

1. Securities Acquisition: The investor must have purchased or acquired Extreme Networks common stock during the Class Period, spanning July 27, 2022, to January 30, 2024.
2. Financial Losses: The investor must have suffered financial losses as a direct result of the alleged securities fraud perpetrated by Extreme Networks and its executives.
3. Typicality and Adequacy: The investor's legal claims must be typical of those asserted on behalf of the class, and they must demonstrate their ability to adequately represent the interests of the entire class through experience, resources, and the absence of conflicts of interest.

It is crucial to note that both domestic and international investors who meet these criteria are eligible to seek appointment as the lead plaintiff in the Extreme Networks class ​action lawsuit, as courts have consistently recognized the rights of non-U.S. investors in securities class actions.

LEGAL REQUIREMENTS FOR PREVAILING IN THE Extreme Networks CLASS ACTION LAWSUIT

1. Negotiating more competitive attorney fees and reducing litigation costs.​
2. Managing the litigation by overseeing the progress of the case and reviewing important filings.
3. Participating in mediation and settlement discussions.
4. Having a voice in decision-making processes regarding the settlement.
5. No financial risk, as lead counsel covers all costs and expenses and are paid only if they secure a  settlement or judgment recovery for the class
6. Potentially enjoying long-term benefits from governance reform resulting from the litigation.

RESPONSIBILITIES THE LEAD PLAINTIFF WILL HAVE IN THE Extreme Networks CLASS ACTION LAWSUIT

1. Negotiating more competitive attorney fees and reducing litigation costs.
2. Managing the litigation by overseeing the progress of the case and reviewing important filings.
3. Participating in mediation and settlement discussions.
4. Having a voice in decision-making processes regarding the settlement.
5. No financial risk, as lead counsel covers all costs and expenses and are paid only if they secure a  settlement or judgment recovery for the class
6. Potentially enjoying long-term benefits from governance reform resulting from the litigation.

LEGAL REQUIREMENTS FOR PREVAILING IN THE Extreme Networks CLASS ACTION LAWSUIT

​Securities class action lawsuits typically follow a multi-stage process, which may include:

1. Consolidation and Lead Plaintiff Appointment: Related cases are consolidated, and the court appoints the lead plaintiff(s) to represent the class.
2. Filing of Consolidated Complaint: The lead plaintiff files a consolidated complaint outlining the allegations against the defendants.
3. Motion to Dismiss: The defendants may file a motion to dismiss the complaint, which the court will consider and rule upon.
4. Class Certification: The court determines whether the case meets the criteria for class certification, allowing it to proceed as a class action.
5. Discovery: Both parties exchange relevant documents and information through the discovery process.
6. Settlement Negotiations and Mediation: The parties may engage in settlement negotiations or mediation to explore the possibility of resolving the case without a trial.
7. Summary Judgment Motions: The parties may file motions for summary judgment, seeking a resolution without a trial based on the undisputed facts.
8. Trial: If the case does not settle, it proceeds to trial, where a judge or jury will determine liability and damages.
9. Appeals: Either party may appeal the court's decisions, potentially extending the litigation timeline.

​The duration of a securities class action lawsuit can vary significantly depending on the complexity of the case and the parties' willingness to engage in settlement negotiations.

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