Equinix, Inc.

On March 20, 2024 Hindenburg Research published a report alleging, among other things, that Equinix “manipulates its accounting” for its adjusted funds from operations, overstating the metric by approximately 22% in 2023.

On this news, Equinix’s stock price fell $19.70, or 2.3%, to close at $824.88 per share on March 20, 2024, thereby injuring investors.

Then, on March 25, 2024, the Company disclosed that it had received a subpoena from the U.S. Attorney’s Office of the Northern District of California.

On this news, Equinix’s stock price fell $8.45, or 1.1%, to close at $792.52 per share on March 25, 2024, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Equinix manipulated its financials to reduce operational expenses and boost Adjusted Funds From Operations (“AFFO”); (2) Equinix oversold power capacity and did not warn of the risks associated with this practice; (3); Equinix lacked adequate internal controls; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.