SAN FRANCISCO, April 1, 2021 /PRNewswire/ — Hagens Berman urges Ubiquiti Inc. (NYSE: UI) investors with significant losses to submit your losses now. The firm is investigating possible securities law violations and certain investors may have valuable claims.
Ubiquiti Inc. (NYSE: UI) Investigation:
The investigation focuses on whether Ubiquiti accurately reported the nature and scope of a recent security breach incident.
On Jan. 11, 2021, Ubiquiti urged customers to change their passwords and enable multi-factor authentication after it became aware of unauthorized access to certain of its information technology systems hosted by a third-party cloud provider. The company, however, downplayed the seriousness of the incident, advising its customers that it was not currently aware of evidence of access to databases that host user data.
But on March 30, 2021, KrebsonSecurity published an article entitled, «Whistleblower: Ubiquiti Breach ‘Catastrophic,'» reporting that a Ubiquiti security professional who helped the company respond to the two-month breach beginning in December 2020 informed Krebs that the breach was catastrophically worse than reported. Krebs quoted the source as saying «[t]he breach was massive, customer data was at risk, access to customers’ devices deployed in corporations and homes around the world was at risk.» The source also reportedly said the Jan. 11, 2021 breach disclosure was «downplayed and purposefully written to imply that a 3rd party cloud vendor was at risk and that Ubiquiti was merely a casualty of that, instead of the target of the attack.» In reality, according to Krebs‘ reporting, the attackers gained administrative access to Ubiquiti’s servers.
In response, the price of Ubiquiti shares fell over 16% during intraday trading on March 31, 2021.
«We’re focused on investors’ losses and whether Ubiquiti intentionally misrepresented the security of a core business,» said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are an Ubiquiti investor and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Ubiquiti should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email UI@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national law firm with eight offices in eight cities around the country and over eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 844-916-0895
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SOURCE Hagens Berman Sobol Shapiro LLP