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Ubiquiti Inc. Class Action Lawsuit

Company Name
Ubiquiti Inc.
Stock Symbol
UI
Class Period
January 11, 2021 to March 30, 2021
Motion Deadline
July 18, 2021
Court
Southern District of New York
30 days left to seek lead plaintiff status

Case Summary

The Ubiquiti Inc. class action lawsuit charges Ubiquiti and its top executives with violations of the Securities Exchange Act of 1934 and seeks to represent persons and entities that purchased or otherwise acquired Ubiquiti securities between January 11, 2021 and March 30, 2021, inclusive (the “Class Period”).  The Ubiquiti class action lawsuit was commenced on May 19, 2021 in the Southern District of New York and is captioned Mölder v. Ubiquiti Inc., No. 21-cv-04520.

The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Ubiquiti securities during the Class Period to seek appointment as lead plaintiff in the Ubiquiti 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 Ubiquiti class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Ubiquiti class action lawsuit.  An investor’s ability to share in any potential future recovery of the Ubiquiti action lawsuit is not dependent upon serving as lead plaintiff.  If you wish to serve as lead plaintiff of the Ubiquiti class action lawsuit or have questions concerning your rights regarding the Ubiquiti class action lawsuit, please provide your information here or contact counsel, J.C. Sanchez of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at jsanchez@rgrdlaw.com.  Lead plaintiff motions for the Ubiquiti class action lawsuit must be filed with the court no later than July 18, 2021.

Ubiquiti develops and markets equipment and technology platforms for high-capacity Internet access, unified information technology, and consumer electronics.  On January 11, 2021, Ubiquiti issued a public notice stating that it had become aware of “unauthorized access to certain of our information technology systems hosted by a third party cloud provider.”

The Ubiquiti class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) Ubiquiti had downplayed the January 2021 data breach it had suffered; (ii) attackers had obtained administrative access to Ubiquiti’s servers and obtained access to, among other things, all databases, all user database credentials, and secrets required to forge single sign-on (SSO) cookies; (iii) thus, intruders already had credentials needed to remotely access Ubiquiti’s customers’ systems; and (iv) as a result, defendants’ positive statements about Ubiquiti’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On March 30, 2021, Krebs on Security published an article entitled “Whistleblower: Ubiquiti Breach ‘Catastrophic’” stating that Ubiquiti had downplayed a data breach from January 2021 and that the “third-party cloud provider claim was a fabrication.”  According to the article, the attacker(s) had accessed “privileged credentials that were previously stored in the LastPass account of a Ubiquiti IT employee, and gained root administrator access to all Ubiquiti AWS [Amazon Web Services] accounts, including all S3 data buckets, all application logs, all databases, all user database credentials, and secrets required to forge single sign-on (SSO) cookies.”  As a result, the article noted that “Ubiquiti should have immediately invalidated customers’ credentials and forced a reset,” rather than asking customers to change their passwords when they next log on.  On this news, Ubiquiti’s stock price fell more than 14%, damaging investors.

With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions. Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm.

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