Gibbs Law Group LLP Launches Ubiquiti Legal Investigation

SAN FRANCISCO, CA – The law firm of Gibbs Law Group LLP today announced that it is investigating Ubiquiti Networks, Inc. (NASDAQ: UBNT) for possible violations of federal securities laws.  The Ubiquiti legal investigation focuses on the reports that the company’s offering documents and public statements failed to adequately disclose counterfeit operations that were known to the company at the time of its IPO.

In March 2011, Ubiquiti reportedly learned that some of its former distributors were counterfeiting Ubiquiti’s most popular product and selling it in direct competition with genuine Ubiquiti products.  But Ubiquiti did not disclose any information about the fraud scheme until May 2012, months after the company and its insiders had sold about 7 million shares of stock for gross proceeds of about $105 million in the company’s October 2011 IPO.  After the news broke, Ubiquiti shares had dropped over 75% from a high of $35 per share.

“Investors rely on offering documents and a company’s public statements to disclose all material information about a company and its business prospects,” said attorney Jonathan Levine of Gibbs Law Group.  “A reasonable investor would want to know if sales of the company’s best-selling product line were being affected by a global fraud scheme.”

Gibbs Law Group is investigating whether Ubiquiti, certain of its officers and directors or its underwriters have violated the federal securities laws by failing to disclose material information to investors.  If you invested in Ubiquiti common stock and would like to learn more about this investigation, or have questions concerning your legal rights, contact Gibbs Law Group at (866) 981-4800.

Gibbs Law Group LLP is one of the nation’s leading firms representing investors, employees, consumers and small businesses in cases involving securities, consumer protection, personal injury, antitrust, and employment laws.