SAN FRANCISCO, March 20, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Equinix, Inc. (NASDAQ:EQIX) investors who suffered substantial losses to submit your losses now.
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Equinix, Inc. (NASDAQ:EQIX) Investigation:
On Mar. 20, 2024, Equinix shares declined sharply after activist short seller Hindenburg Research took aim at the data center provider, alleging that Equinix's senior management was manipulating key financial metrics to boost the appearance of profitability and trigger executive stock grants.
Hindenburg's detailed allegations have led prominent investors' rights law firm, Hagens Berman, to open an investigation into possible violations of the U.S. securities.
Hindenburg's report, entitled "Equinix Exposed: Major Accounting Manipulation, Core business Decay And Selling An AI Pipedream As Insiders Cashed Out Hundreds of Millions," is based in part on interviews with 37 former Equinix employees and a forensic review of the company's financial statements.
Significantly, Hindenburg's forensic review concludes that:
(1) Equinix inflates its adjusted funds from operations ("AFFO"), the key profitability metric for REITs, by at least 22% during 2023 alone;
(2) "[a] key accounting trick to boost AFFO is to misclassify ‘maintenance CapEx' as ‘growth CapEx,' ...
EQIX) Falls After Hindenburg Research Accuses Company of Manipulating Metrics to Increase Executive Compensation - Hagens Berman>Full story available on Benzinga.com