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CMBM.US
id: 947

Cambium Networks (CMBM) Downward Outlook Case

N.D. Illinois
Court
1:24-cv-04240
Case number
08 May 2023
Class period Start
18 Jan 2024
Class period End
22 Jul 2024
Lead Plaintiff motion deadline
  • A $CMBM stockholder filed a claim against Cambium Networks for hiding that high inventory and discounts will cut 2023 revenue and raise costs.
  • On October 5, 2023, after the financial results, $CMBM fell 36.2%, losing $79M+ of shareholder value.
  • Cambium Networks investors can join this case to be notified about potential recovery.
Case Details:

On October 5, 2023, Cambium Networks (CMBM) announced preliminary results for Q3 2023, revealing a significant reduction in expected revenues compared to the previous outlook of August 1, 2023. The Company attributed this reduction to:
  • Delay in government defense orders,
  • Sluggish revenues in the Point-to-Multi-Point business,
  • Decrease in orders and an increase in stock rotations from distributors in the Enterprise business,
  • And continued economic headwinds.
On this news, $CMBM fell 36.2%, losing $79M of its market capitalization, seriously damaging shareholders.

Based on these events, $CMBM stockholder filed a claim against Cambium Networks and its leaders, accusing them of the following:
  • The company had too much inventory and would likely offer big discounts to clear it.
  • Revenue would drop and they might face significant costs to write off old stock.
Considering all the representations, investors suspect Cambium Networks hid that high inventory and discounts will cut 2023 revenue and raise costs.
Case Status
Lead Plaintiff Submission
Alleged Offence
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
05 October 2023
Filing date
22 May 2024
Lead Plaintiff Deadline
22 July 2024
Collecting participants…