Equinix Faces the Numbers — Settlement Approved

Court: N.D. California

Case: 3:24-cv-02656

The court has officially approved the settlement between Equinix EQIX and investors, locking in the terms of a deal to resolve allegations of misleading financial reporting.

The Hindenburg Report That Sparked It All

On March 20, 2024, Hindenburg Research accused Equinix of overstating its Adjusted Funds From Operations (AFFO) by at least 22% in 2023. The report also pointed to questionable AI-related claims, underperformance in Equinix’s core business, and weaknesses in internal controls.

After this news, EQIX dropped 2.3%, wiping out more than $1.86 billion in shareholder value.

From Allegations to Legal Action

Investors filed a class action lawsuit on May 2, 2024, arguing that Equinix misled them about its true financial health and performance. They believed that the company overstated profitability while downplaying operational challenges.

Settlement Agreement

Equinix has now agreed to settle, and with the court’s approval, all terms are binding. While the company has not admitted wrongdoing, the settlement offers a pathway for affected shareholders to recover losses.

If you purchased EQIX during the affected period, you may be eligible to participate and claim compensation. You can check the details and submit your claim here.