In re Ubiquiti Networks, Inc. Securities Litigation

Order Granting Motions to Dismiss

Introduction

Defendant Ubiquiti Networks, Inc. (“Ubiquiti”) is a publicly traded company that makes broadband wireless devices and sells them worldwide, primarily in emerging markets such as South America. Plaintiffs are alleged purchasers of Ubiqui-ti stock who seek to represent a class of similarly situated individuals. The gravamen of their allegations is that Ubiquiti knew of a wide-ranging counterfeit operation producing knock-offs of Ubiquiti devices and thereby damaging Ubiquiti’s standing in the market, but that Ubiquiti, in statements made in connection with its October 14, 2011 initial public offering of stock (“IPO”), as well as later statements connected to its announcement of quarterly financial results, downplayed the extent of the counterfeiting and concealed its impact on Ubiquiti’s business. Plaintiffs allege that, once the market learned of the counterfeiting’s true extent and impact, Ubiquiti’s stock price fell, damaging them and the putative class.

All defendants move for dismissal of plaintiffs’ Consolidated Amended Complaint (Dkt. No. 54 (“CAC”)). The CAC groups the defendants in various sets and subsets, as set forth…