NEW YORK, June 21, 2024 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Equinix, Inc. (“Equinix” or the “Company”) (NASDAQ: EQIX) and reminds investors of the July 1, 2024 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $100,000 In Equinix To Contact Him Directly To Discuss Their Options
If you suffered losses exceeding $100,000 investing in Equinix stock or options between May 3, 2019 and March 24, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/EQIX.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Equinix manipulated its financials to reduce operational expenses and boost Adjusted Funds From Operations (“AFFO”); (2) Equinix oversold power capacity and did not warn of the risks associated with this practice; (3) Equinix lacked adequate internal controls; and (4) as a result, Defendants’ public statements were materially false and/or misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
On March 20, 2024, before the market opened, Hindenburg Research released a report entitled "Equinix Exposed: Major Accounting Manipulation, Core Business Decay And Selling an AI Pipe Dream As Insiders Cashed Out Hundreds of Millions." In part, Hindenburg stated its "investigation, which included a review of financial and litigation records and interviews with 37 former Equinix employees, industry experts and competitors, revealed that Equinix manipulates its accounting for AFFO ("adjusted funds from operations"), the key profitability metric for REITs [("Real Estate Investment Trust")]. We estimate this metric was overstated by at least 22% in 2023 alone."
On this news, Equinix's stock fell $19.70 per share, or 2.3%, to close at $824.88 per share on March 20, 2024.
Then, on March 25, 2024, Equinix filed an 8-K with the U.S. Securities and Exchange Commission, which contained a press release in which Equinix announced that the Audit Committee of the Company's Board of Directors had commenced an independent investigation to review the matters referenced in the Hindenburg report. Equinix also announced that it had received a subpoena from the U.S. Attorney's Office for the Northern District of California shortly after the release of the Hindenburg report.
On this news, Equinix's stock fell $8.45 per share, or 1.1%, to close at $792.52 per share on March 25, 2024.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Equinix’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the Equinix class action, go to www.faruqilaw.com/EQIX or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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