Calix, Executives Sued by Investor Over Memory Component Costs

An investor sued cloud and software platform provider Calix Inc. and two executives, alleging they hid rising memory costs that hurt profit margins.

Calix, CEO Michael Weening, and Chief Financial Officer Cory Sindelar failed to disclose that the company’s strong first-quarter margins benefited from earlier purchases of memory components at lower prices, according to the proposed class action filed Wednesday in the US District Court for the Northern District of California.

The lawsuit seeks damages for investors who bought Calix stock from Jan. 28 through April 21.

The defendants allegedly violated the Securities Exchange Act by making misleading statements about ...