A class action has been filed in the United States District Court for the Northern District of California on behalf of purchasers of Equinix, Inc. (NASDAQ: EQIX) common stock during the period between July 29, 2010 and October 5, 2010, inclusive (the “Class Period”). 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.
If you are a current shareholder and purchased during the period July 29, 2010 and October 5, 2010, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.