Extreme Networks, Inc. is a provider of computer networking solutions and related services and support.

A recently filed securities fraud class action complaint alleges that that Extreme Networks, through certain of its officers and directors, made false and/or misleading statements and failed to disclose the following adverse facts pertaining to Extreme’s business, operations, and financial condition: (a) that Extreme Networks was suffering from adverse client demand trends as its clients had ordered more product from Extreme than needed in the wake of the COVID-19 pandemic to avoid supply shortages and because of a lack of alternative sourcing options and thereby had cannibalized their purchasing needs; (b) that Extreme Networks was increasingly offsetting these adverse organic demand trends with the fulfillment of backlog orders in a manner that materially exceeded the proportion represented to investors; (c) that, as a result of (a)-(b), Extreme Networks was drawing down its backlog at a much faster rate than represented to investors; (d) that, as a result of (a)-(c), Extreme Networks’  backlog was already decreasing and at a much quicker pace than the Company’s statements to investors that backlog would only “begin to shrink” in 4Q23 and it would be not until “fiscal ‘26 when it really goes back to normal”; (e) that, as a result of (a)-(d), Extreme Networks’ backlog was not on track to continue increasing to $600 million; and (f) that, as a result of (a)-(e) above, Defendants had materially misrepresented Extreme Networks’ organic demand, revenue growth, and market share gains as the fulfillment of Extreme’s backlog masked a decline in organic demand and attendant revenues.

Current shareholders who have continuously held Extreme Networks shares since prior to July 27, 2022, can seek corporate reforms, the return of funds back to company coffers, and a court approved incentive award at no cost to them.

If you would like to learn more about this matter at no cost to you, you are encouraged to contact Joshua H. Grabar at [email protected] or Mia R. Heller at [email protected], or call us at 267-507-6085.