The law firm of Wohl & Fruchter LLP is investigating possible violations of federal securities laws by officers and directors of Aruba Networks, Inc. (Aruba) (Nasdaq: ARUN).
On May 16, 2013, after the close of the market, Aruba announced disappointing third quarter financial results. Subsequently, Aruba hosted a conference call with analysts during which it forecast fourth quarter revenue and earnings well below estimates. Management attributed the poor 3Q results and weak 4Q forecast to new sales tactics adopted by one of Aruba’s primary competitors, Cisco Systems.
Upon the above news, on May 17, 2013, ARUN shares dropped over 27% from a prior close of $17.61/share to $12.85/share by 2:00 PM EST, resulting in shareholder losses of over $542 million.
Our investigation concerns whether Aruba management violated federal securities laws by, among other things, previously concealing from investors the nature and significance of the competitive threat from Cisco and its impact on the company’s business prospects.
Persons with relevant information, and ARUN shareholders with questions about this investigation, are invited to contact the attorney below, or our Firm by calling 866.582.8140.
About Wohl & Fruchter
Wohl & Fruchter LLP represents plaintiffs in litigation arising from fraud and other fiduciary breaches by corporate managers, as well as other complex litigation matters.
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