BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that it is investigating potential claims against Equinix, Inc. (“Equinix” or the “Company”) (NASDAQ:EQIX) concerning possible breaches of fiduciary duties by the Company or its fiduciaries. Equinix is a global network-neutral provider of data centers and Internet exchanges.
The investigation concerns allegations that starting in July 2010 the Company issued a series of materially false and misleading statements regarding Equinix’s business and financial results. Specifically, that Equinix was having difficulty with the integration of Switch & Data Corporation Facilities Company (which had formerly been Equinix’s biggest competitor and which been acquired for $700 million in April 2010) into its operations due to a decline in bookings prior to the close of the acquisition and due to the Company’s aggressive synergy plan. The Company further touted its data center colocation services as being robust and failed to disclose that the Company’s “demand fulfillment” business model was not working and causing Equinix to experience increased churn and pricing pressure on its colocation services.
On October 5, 2010, Equinix issued a press release announcing revised third-quarter and fiscal-year 2010 guidance, and also announced that the Company would transition from a “demand fulfillment” business model to a “demand creation” model. On this news, Equinix’s stock price fell by $34.75 per share, more than 33%, to close at $70.34 per share on October 6, 2010. The stock is currently trading in the range of $84.00 per share.
If you purchased Equinix stock and still hold those shares, if you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at http://www.howardsmithlaw.com.