Girard Gibbs LLP is investigating potential securities fraud claims on behalf of purchasers of Ixia (NASDAQ: XXIA) shares. The investigation concerns whether Ixia and certain of its officers and/or directors may have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 in connection with statements regarding Ixia’s business, operations and financial prospects. On January 14, 2013, Ixia increased its revenue guidance range for the fourth quarter of 2012, announcing that it expected revenue to be in the range of $123.5 million to $124.5 million, above its previously stated guidance range of $118 million to $122 million.
On November 14, 2013, The Wall Street Journal reported that, as Ixia’s stock price rose on this news, eight senior executives, including Victor Alston, the former President, CEO and Director, sold more than $18.4 million of Ixia stock at an average price of $20.96 a share. According to The Wall Street Journal, the sales exceeded what Ixia’s executives had sold during the previous seven years.
IXIA Restates Financial Results
On April 4, 2013, shares of Ixia fell $1.94, or more than 9 percent, from its closing price on April 5, 2013, after the company announced restated financial results for 2010, 2011 and the first three quarters of 2012. Shortly thereafter on April 11, 2013, Ixia announced that it expected revenues in the first quarter of 2013 to be in the range of $121 million to $123 million, below its prior revenue guidance of $125 million to $127 million.
CEO Victor Alston Resigns after Misstating Credentials and the Resulting Audit
On October 24, 2013 Ixia announced that Victor Alston had resigned as its President, CEO and a member of its board of directors, “following a determination by the Ixia audit committee that although he had attended Stanford University, he had misstated his academic credentials, incorrectly claiming to have received a B.S. and a M.S. in Computer Science, and had misstated his age and early employment history.” In response to this news, Ixia share price fell $1.32 or more than 7%, trading at $14.40 in intraday trading on October 25, 2013.
On November 13, 2013, Ixia filed a notification of inability to timely file a Form 10-Q with the U.S. Securities and Exchange Commission, noting that as a result of the resignation of Victor Alston, Ixia’s Audit Committee, with the assistance of independent counsel, is “conducting an email review and performing additional procedures to ensure the accuracy of its recording of financial information and appropriateness of its financial reporting.” In response to this news, Ixia shares fell another 5.74%, closing at $13.94 on November 14, 2013.
If you purchased Ixia shares or are aware of any facts relating to this investigation, or would like more information about this investigation, please contact John Kehoe, Esq. at (415) 544-6283.