お知らせ • May 23
Glancy Prongay & Murray LLP Files Securities Fraud Lawsuit against Cambium Networks Corporation
Glancy Prongay & Murray LLP announced that it has filed a class action lawsuit in the United States District Court for the Northern District of Illinois, captioned Hamby v. Cambium Networks Corporation, et al., Case No. 1:24-cv-04240, on behalf of persons and entities that purchased or otherwise acquired Cambium Networks Corporation securities between May 8, 2023 and January 18, 2024, inclusive. Plaintiff pursues claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”). On August 1, 2023, after the market closed, Cambium reported that second quarter 2023 revenue fell 23% sequentially due to “higher channel inventories” that resulted in “lower demand for Enterprise products.” As a result, the Company reduced its fiscal 2023 guidance, now expecting revenue to decline 7% to 11% year-over-year. The Company also announced that the Company’s Chief Executive Officer, Atul Bhatnagar, would step down immediately. On this news, the price of Cambium shares declined by $4.89 per share, or 30.07%, to close at $11.37 per share on August 2, 2023, on unusually heavy trading volume. Then, on October 4, 2023, after the market closed, Cambium announced preliminary third quarter 2023 revenue “between $40.0-$45.0 million compared to the previous outlook of $62.0-$70.0 million[.]” The Company attributed the shortfall to, in part, “a decrease in orders and an increase in stock rotations from distributors in the Enterprise business” and “pressure” from “channel inventories.” On this news, the price of Cambium shares declined by $2.87 per share, or 36.2%, to close at $5.05 per share on October 5, 2023, on unusually heavy trading volume. Then, on January 18, 2024, after the market closed, Cambium revealed that preliminary fourth quarter 2023 revenue was expected to be “approximately $40.0 million compared to the previous outlook of $45.0-$50.0[.]” The Company attributed the revenue shortfall to “offering aggressive Enterprise product discounts to clear excess channel inventories.” The Company further revealed “gross margin will also be below the low end of the range due to increased excess and obsolete inventory reserves.” Moreover, the Company’s Chief Financial Officer would depart Cambium on February 2, 2024. On this news, the price of Cambium shares declined by $0.60 per share, or 12.40%, to close at $4.24 per share on January 19, 2024, on unusually heavy trading volume. The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) that there was a buildup of inventory in the Company’s distribution channels; (2) that the Company and its distributors were reasonably likely to offer aggressive discounts to reduce the high channel inventories; (3) that the Company’s revenue would decline sequentially until the excess channel inventory was sold through; (4) that Cambium was likely to incur significant charges to writedown excess and obsolete inventory; (5) that, as a result of the foregoing, the Company’s fiscal 2023 revenue and earnings would be adversely affected; and (6) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.