San Diego, CA -- (SBWIRE) -- 02/17/2015 -- An investor, who purchased shares of A10 Networks Inc (NYSE:ATEN), filed a lawsuit in Santa Clara County Superior Court against A10 Networks Inc in connection with the A10 Networks' initial public stock offering on or about March 21, 2014

Investors who purchased A10 Networks' securities (NYSE:ATEN) have certain options and for certain investors are short and strict deadlines running. Deadline: March 30, 2015. NYSE:ATEN investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

The lawsuit was filed on behalf of purchasers who purchased of A10 Networks Inc (NYSE:ATEN) securities pursuant and/or traceable to the Registration Statement and Prospectus issued in connection with the IPO on or about March 21, 2014.

The plaintiff alleges that the Registration Statement contained materially misleading information and/or omitted material information, and that it was not prepared in accordance with governing rules and regulations. More specifically the plaintiff alleges that company's registration statement emphasized A10 Networks' purportedly strong on-going sales growth rate without disclosing any then allegedly present downturn in that sales trend.

On November 26, 2013, A10 Networks Inc filed with the Securities and Exchange Commission ("SEC ") a Registration Statement, which would later be utilized for the IPO in March 2014 following several amendments in response to comments by the SEC. On March 21, 2014, the SEC declared the Registration Statement effective and A10 Networks Inc and the underwriters priced the IPO at $15 per share and filed the final Prospectus for the IPO, which forms part of the Registration Statement. Shares of A10 Networks Inc (NYSE:ATEN) reached $16.50 per share on March 21, 2014 in the open market.

The plaintiff says that one section of the registration statement allegedly concealed that a significant portion of the 2013 sales growth was due to existing customers exchanging AX series product for the newly rolled out Thunder Series product. However, the plaintiff claims that A10 Networks Inc should have disclosed was that its 2013 sales growth had been substantially augmented by such product conversions, rather than through organic sales to new customers, and this upgrade cycle had largely extinguished itself by the time of the IPO.

The plaintiff claims that the products in the two product families are not interchangeable, and as A10 Networks' Thunder Series product sales increased and AX Series products decreased, A10 Networks Inc built up an inventory of obsolete AX Series product.

The plaintiff says that despite the obsolete AX Series product on its books at allegedly inflated values, A10 Networks Inc took only a partial inventory write-down of $2.6 million at the end of fiscal 2013 and that significant obsolete inventory allegedly remained on A10 Networks' books at allegedly inflated values at the time of the IPO.

On May 1, 2014, A10 Networks Inc reported its first quarter 2014 financial results. A10 Networks Inc said that Total revenue for the first quarter grew 55 percent year-over-year to $45.7 million, compared with $29.6 million in the first quarter of 2013. On July 30, 2014, A10 Networks Inc reported its second quarter 2014 financial results. A10 Networks Inc said that its total revenue for the second quarter grew 50 percent year-over-year to $45.1 million, compared with $30.1 million in the second quarter of 2013.

Then on October 30, 2014, A10 Networks Inc reported its third quarter 2014 financial results. A10 Networks Inc said that its total revenue for the third quarter was $43.4 million, compared with $39.8 million in the third quarter of 2013.

Shares of A10 Networks Inc (NYSE:ATEN) declined to as low as $3.93 per share in early December 2014.

On February 13, 2015, NYSE:ATEN shares closed at $4.14 per share.

Those who purchased shares of A10 Networks Inc (NYSE:ATEN) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com