Block & Leviton LLP (www.blockleviton.com),a national securities litigation firm, announces that it is investigating Ubiquiti, Inc. (NYSE: UI) for potential violations of the federal securities laws.
Ubiquiti is a major vendor of cloud-enabled Internet of Things (IoT) devices such as routers, network video recorders, and security cameras. On January 11, 2021, Ubiquiti disclosed that a breach involving a third-party cloud provider had exposed customer account credentials. Shares fell approximately 5.3% over the next two trading days. On March 30, 2021, well known cybersecurity analyst Brian Krebs reported that “a source who participated in the response to that breach” is alleging that 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.” This anonymous security professional stated that the breach “was catastrophically worse than reported, and legal silenced and overruled efforts to decisively protect customers. . . . The breach was massive, customer data was at risk, access to customers’ devices deployed incorporations and homes around the world was at risk.” On this news, shares are down significantly in intraday trading.