ROBBINS GELLER RUDMAN & DOWD LLP FILES CLASS
ACTION SUIT AGAINST EQUINIX, INC.
March 4, 2011 – Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/equinixinc/) today announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the Northern District of California on behalf of purchasers of Equinix, Inc. (“Equinix”) (NASDAQ:EQIX) common stock during the period between July 29, 2010 and October 5, 2010, inclusive (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/equinixinc/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Equinix and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Equinix is a global network-neutral provider of data centers and Internet exchanges.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and financial results. Specifically, defendants failed to disclose that Equinix was having difficulty with the integration of Switch & Data Corporation Facilities Company (acquired in April 2010) into its operations due to a decline in bookings prior to the close of the acquisition and due to the Company’s aggressive synergy plan. Defendants further continuously hyped demand for the Company’s colocation services as being robust and failed to disclose that the Company’s business model was not working and was causing the Company to experience increased churn and pricing pressure on its colocation services. As a result of defendants’ false statements, Equinix’s stock traded at artificially inflated prices during the Class Period, reaching a high of $105.09 per share on October 5, 2010.
After the market closed on October 5, 2010, Equinix issued a press release announcing revised third quarter and fiscal year 2010 guidance. The Company reported it expected revenue to be in the range of $328.0 to $330.0 million for the third quarter of 2010. The Company further reported it expected revenues for the full year 2010 to be approximately $1,215.0 million, 1.2% lower than the midpoint of its previous outlook. In addition, the Company announced that it would transition from a demand fulfillment business model to a demand creation model. On this news, Equinix’s stock collapsed $34.75 per share to close at $70.34 per share on October 6, 2010, a one-day decline of over 33% on high volume.
Plaintiff seeks to recover damages on behalf of all purchasers of Equinix common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller, a 180-lawyer firm with offices in San Diego, San Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Robbins Geller Web site (http://www.rgrdlaw.com) has more information about the firm.