Bragar Eagel & Squire, P.C. is Investigating Ubiquiti, Inc.

UBIQUITI ALERT: Bragar Eagel & Squire, P.C. is Investigating Ubiquiti, Inc. on Behalf of Ubiquiti Stockholders and Encourages Investors to Contact the Firm
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NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Ubiquiti, Inc. (NYSE: UI) on behalf of Ubiquiti stockholders. Our investigation concerns whether Ubiquiti has violated the federal securities laws and/or engaged in other unlawful business practices.

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On January 11, 2021, Ubiquiti disclosed that a breach involving a third-party cloud provider had exposed customer account credentials.
On this news, Ubiquiti’s share price fell $13.69 per share, or 5%, over the next two trading days.

Then on March 30, 2021, the Krebs on Security posted an article entitled “Whistleblower: Ubiquiti Breach ‘Catastrophic’” stating that “[n]ow a source who participated in the response to that breach alleges Ubiquiti massively downplayed a ‘catastrophic’ incident to minimize the hit to its stock price, and that the third-party cloud provider claim was a fabrication.” Further, the article quoted a letter from the source to the European Data Protection Supervisor stating “[i]t was catastrophically worse than reported, and legal silenced and overruled efforts to decisively protect customers” and “[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.”

[matt (support)]

Ouch – what a PR nightmare for them. From what I've read they definitely didn't handle the initial disclosure well.

For sure. There's some allegations that Ubiquiti down-played the issue in order to artificially prop up the stock price. If I were in charge of the investigation, one thing I would look into is recent moves on stock options.