Former Ubiquiti Networks Distributor Says Company Knew of Counterfeiting in 2009
Former Ubiquiti Networks (NASDAQ: UBNT) Middle East distributor, Asim Sajwani, told Benzinga Friday the company knew of counterfeiting in 2009, two years before its IPO. Ubiquiti's 10K filing released on Friday mentions a lawsuit filed in May 2012 against Kozumi USA Corp. and its owner Shao Wei (William) Hsu. Ubiquiti was granted a preliminary injunction on July 9 enjoining Kozumi and Hsu from using in any manner any registered trademark owned by Ubiquiti.
In July, Sajwani said he was contacted by SEC investigators regarding cash movements involving Ubiquiti and sales of technology to Iran. Ubiquiti denied the company was contacted by the SEC and described Sajwani as a "former disgruntled distributor."
Sajwani also told Benzinga Ubiquiti is losing market share to Latvian wireless company Mikrotik.
Ubiquiti shares fell from a high of $35 in May to a low under $8 in August.
Ubiquiti Networks closed at $11.90 on Friday, up $0.38.
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