A10 Networks, Inc.
- Company Name
- A10 Networks, Inc.
- Stock Symbol
- Class Period
- February 9, 2016 to January 30, 2018
- Motion Deadline
- May 21, 2018
- Northern District of California
The complaint charges A10 Networks and certain of its officers with violations of the Securities Exchange Act of 1934. A10 Networks provides software and hardware solutions in the United States and internationally.
The complaint alleges that throughout the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding the Company’s business and financial results, including that, due to issues with A10 Networks’ internal controls and procedures, the Company’s Audit Committee had initiated an investigation into certain accounting and internal control matters, which was focused on revenue recognition issues from the fourth quarter of 2015 through the fourth quarter of 2017. As a result of defendants’ false statements and/or omissions, A10 Networks securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high of nearly $11 per share.
On January 16, 2018, A10 Networks announced disappointing preliminary fourth quarter 2017 financial results, which were below the Company’s previous guidance. The Company blamed the results on a “shortfall in North America sales,” as it had “experienced lower than expected seasonal demand trends in the region.” On this news, the price of A10 Networks shares fell over 13% to close at $6.32 per share on January 17, 2018.
Then, on January 30, 2018, the Company announced it was postponing the release of its fourth quarter and full year financial results due to the investigation initiated by its Audit Committee. The Company stated that it had “determined that a mid-level employee within its finance department had violated the Company’s Insider Trading Policy and Code of Conduct,” and that, as a result, the Company had initiated, with the assistance of outside counsel, a review “to ensure the accuracy of its reporting of financial information for 2017.” In addition, A10 Networks stated that its Audit Committee had “determined that further review and procedures relating to certain accounting and internal control matters should be undertaken,” and that the review was “principally focused on certain revenue recognition matters from the fourth quarter of 2015 through the fourth quarter of 2017.” On this news, the price of A10 Networks shares fell over 12% to close at $6.13 per share on January 31, 2018.