Lawsuit filed for Investors who lost money with shares of Cambium Networks Corporation (NASDAQ: CMBM)

An investor, who purchased shares of Cambium Networks Corporation (NASDAQ: CMBM), filed a lawsuit over alleged violations of Federal Securities Laws by Cambium Networks Corporation in connection with certain allegedly false and misleading statements.

Investors who purchased shares of Cambium Networks Corporation (NASDAQ: CMBM) have certain options and for certain investors are short and strict deadlines running. Deadline: July 20, 2024. NASDAQ: CMBM investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Rolling Meadows, IL based Cambium Networks Corporation, together with its subsidiaries, designs, develops, and manufactures wireless broadband and Wi-Fi networking infrastructure solutions. Cambium Networks Corporation reported that its annual Total Revenue declined from $335.85 million in 2021 to $296,89 million in 2022 and that its Net Income declined from $37.42 million in 2021 to $20.20 million in 2022.

On August 1, 2023, after the market closed, Cambium Networks Corporation reported that second quarter 2023 revenue fell 23% sequentially due to "higher channel inventories" that resulted in "lower demand for Enterprise products." As a result, the Company reduced its fiscal 2023 guidance, now expecting revenue to decline 7% to 11% year-over-year. The Company also announced that the Company's Chief Executive Officer, Atul Bhatnagar, would step down immediately.
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Then, on October 4, 2023, after the market closed, Cambium Networks Corporation announced preliminary third quarter 2023 revenue "between $40.0-$45.0 million compared to the previous outlook of $62.0-$70.0 million[.]" The Company attributed the shortfall to, in part, "a decrease in orders and an increase in stock rotations from distributors in the Enterprise business" and "pressure" from "channel inventories."

Then, on January 18, 2024, after the market closed, Cambium Networks Corporation revealed that preliminary fourth quarter 2023 revenue was expected to be "approximately $40.0 million compared to the previous outlook of $45.0-$50.0[.]" The Company attributed the revenue shortfall to "offering aggressive Enterprise product discounts to clear excess channel inventories." The Company further revealed "gross margin will also be below the low end of the range due to increased excess and obsolete inventory reserves." Moreover, the Company's Chief Financial Officer would depart Cambium on February 2, 2024.

Shares of Cambium Networks Corporation (NASDAQ: CMBM) declined from $24.19 per share on November 04, 2022 to as low as $2.925 per share on April 22, 2024.

The plaintiff claims that between May 8, 2023 and January 18, 2024, the Defendants failed to disclose to investors that there was a buildup of inventory in the Company's distribution channels, that the Company and its distributors were reasonably likely to offer aggressive discounts to reduce the high channel inventories, that the Company's revenue would decline sequentially until the excess channel inventory was sold through, that Cambium was likely to incur significant charges to writedown excess and obsolete inventory, that, as a result of the foregoing, the Company's fiscal 2023 revenue and earnings would be adversely affected, and that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Those who purchased shares of Cambium Networks Corporation (NASDAQ: CMBM) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.