Equinix, Inc. describes itself as “the world’s digital infrastructure company.” Equinix owns data centers in most parts of the world. As of February 2016, Equinix owned 260 data centers around the world. Other organizations lease space within these data centers to house their software.

A recently filed federal securities fraud class action complaint alleges that Equinix, Inc. (NASDAQ: EQIX), via certain of its officers and directors, made materially false and/or misleading statements and/or failed to disclose 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.

On January 6, 2025, the Court denied Defendants' motion to dismiss the complaint.

In denying the Defendants’ motion to dismiss the Court found:

"In all, the complaint raises a strong inference that Equinix misclassified routine recurring capital purchases—like chillers, batteries, and lightbulbs—as non-recurring to artificially inflate its AFFO numbers in a way that misled investors."

The Court further found that "under a holistic view of the allegations, the complaint has created a strong inference of scienter" – i.e. the intent or knowledge of wrongdoing, at the time of the alleged fraudulent activity.

A copy of the Court's opinion on the motion to dismiss can be viewed here: 40776-Order-20250106

Current Equinix shareholders who have held Equinix shares since on or before May 3, 2019, can seek corporate reforms, the return of funds spent defending litigation back to the company, and a court approved incentive award, at no cost to them.

If you would like to learn more about this matter, you are encouraged to contact us at [email protected], or call 267-507-6085.