Equinix, Inc. Class Action Lawsuit - EQIX
Case Summary
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The Equinix class action lawsuit seeks to represent purchasers or acquirers of Equinix, Inc. (NASDAQ: EQIX) publicly traded securities between May 3, 2019 and March 24, 2024, inclusive (the “Class Period”). Captioned Chan v. Equinix, Inc., No. 24-cv-02656 (N.D. Cal.), the Equinix class action lawsuit charges Equinix and certain of Equinix’s top executives with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the Equinix class action lawsuit, please provide your information in the form on this page. You can also contact attorney J.C. Sanchez or Jennifer N. Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at info@rgrdlaw.com. Lead plaintiff motions for the Equinix class action lawsuit must be filed with the court no later than July 1, 2024.
CASE ALLEGATIONS: Equinix describes itself as “the world’s digital infrastructure company” that owns data centers in most parts of the world and operates as a real estate investment trust.
The Equinix class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Equinix manipulated its financials to reduce operational expenses and boost Adjusted Funds From Operations (“AFFO”); (ii) Equinix oversold power capacity and did not warn of the risks associated with this practice; and (iii) Equinix lacked adequate internal controls.
The Equinix class action lawsuit further alleges that on March 20, 2024, Hindenburg Research released a report entitled “Equinix Exposed: Major Accounting Manipulation, Core Business Decay And Selling an AI Pipe Dream As Insiders Cashed Out Hundreds of Millions” that alleged Equinix manipulates its profit margin and AFFO by misclassifying typical expenses, or maintenance capital expenses (“CapEx”), as growth CapEx and that Equinix has relied on an undisclosed and highly risky approach to grow its revenue – overselling power capacity in the hope that customers will not use all of the power, which could result in facility outages and a failure to fulfill contractual obligations. On this news, the price of Equinix stock fell, according to the complaint.
Then, on March 25, 2024, the complaint further alleges that Equinix revealed that “the Audit Committee of the company’s Board of Directors has commenced an independent investigation to review the matters referenced in a recent short seller report” and that Equinix “received a subpoena from the US. Attorney’s Office for the Northern District of California.” On this news, the price of Equinix stock fell, according to the Equinix class action lawsuit.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Equinix publicly traded securities during the Class Period to seek appointment as lead plaintiff in the Equinix 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 Equinix class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Equinix class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Equinix class action lawsuit.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm was ranked #1 on the ISS Securities Class Action Services Top 50 Report for recovering more than $1.75 billion for investors in 2022 – the third year in a row Robbins Geller topped the list. And in those three years alone, Robbins Geller recovered nearly $5.3 billion for investors, more than double the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.