SAN FRANCISCO, June 23, 2024 (GLOBE NEWSWIRE) — Hagens Berman urges Equinix, Inc. (NASDAQ: EQIX) investors who suffered substantial losses to take action by submitting your losses now.
Class Period: May 3, 2019 – Mar. 24, 2024
Lead Plaintiff Deadline: July 1, 2024
Visit: www.hbsslaw.com/investor-fraud/EQIX
Contact the Firm Now: EQIX@hbsslaw.com
844-916-0895
Equinix, Inc. (NASDAQ: EQIX) Class Action:
A report by analyst Far Horizon on Seeking Alpha ignited fresh scrutiny over Equinix’s accounting practices, particularly the key profitability metric Adjusted Funds from Operations (AFFO). In a June 17, 2024 report titled “Equinix: Time To Pull The Trigger?,” Far Horizon seemed to cast doubt on the thoroughness of Equinix’s internal audit, which cleared the company of manipulating AFFO through misclassifying expenses.
“In my corporate experience, it’s unusual for an audit to come up with a 100% clean bill of health, and no change recommendations,” wrote Far Horizon. “While I don’t question the integrity or professionalism of anyone involved, I think that caution is merited pending the SEC findings.”
Far Horizon’s warning to investors comes on the heels of allegations by short seller Hindenburg Research in March 2024, which accused Equinix of inflating profitability by misclassifying essential maintenance costs as growth-related capital expenditures. In response, the EQIX Board Audit Committee carried out an internal review, with support from external professional advisors, and concluded that Equinix’s financial reporting was accurate and that there is no need for restatement on GAAP or non-GAAP measures.
Hindenburg has since dismissed the audit committee’s investigation as lacking objectivity due to its reliance on self-examination and a lack of transparency.
Adding to Equinix’s woes are ongoing investigations by the Securities and Exchange Commission (SEC) and a reported probe by the Department of Justice (DOJ). Additionally, investors have filed a class-action lawsuit mirroring Hindenburg’s claims, alleging financial manipulation.
Recent Equinix financials raise further concerns. The company reported sluggish revenue growth despite high “growth” CapEx, negative free cash flow, and declining physical infrastructure usage. Shareholder rights firm Hagens Berman has also begun investigating Equinix’s AFFO calculations, potentially uncovering additional details.
In conjunction with the investor lawsuit, is probing whether Equinix’s financial reporting accurately reflects underlying profitability, particularly regarding its AFFO calculations and data center capacity utilization. The investigation is being led by partner Reed Kathrein.
If you invested in Equinix and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Equinix case and our investigation, read more »
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
