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Levi & Korsinsky announces the filing of a class action lawsuit in the Superior Court of the State of California, County of San Mateo on behalf of shareholders of Aerohive Networks, Inc. (NYSE: HIVE) who purchased or otherwise acquired their shares pursuant and/or traceable to the Initial Public Offering on or about March 27, 2014.
The complaint alleges that the Company made materially false and misleading statements in its Registration Statement on Form S-1 filed and used for its Initial Public Offering. In particular, it is alleged that the S-1 omitted the following facts: (a) the Company’s sales cycles were declining and non-current deferred revenue was increasing due to delays in new product implementation; (b) the Company had no effective “rapid customer acquisition” as stated in its Form S-1 as conflicts between personnel led to a decline in staffing; (c) the Company was booking as revenue fake “sales” to meet unreasonable revenue projections and make up for sales shortfalls in violation of its internal controls and inconsistent with accounting principles; (d) the Company was experiencing significant turnover in staff due to bad relations and widespread internal disappointment over failed promises and expectations for compensation associated with the IPO, and (e) the Company was experiencing a decline in sales due to an increase in competition.
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