California tech executive Robert Pera, who is trying to purchase the Memphis Grizzlies, is facing a class-action lawsuit filed against his company.
Earlier this week Ubiquiti Networks was named in a class action lawsuit for lying in order to drive up stock prices.
The lawsuit filed in U.S. District Court in Northern District of California, according to online documents states Ubiquiti is accused of hiding information from shareholders to keep stock prices artificially high..
Pera, who could become the future owner of the Memphis Grizzlies, is not named personally in the suit, but senior executives and the board of directors are.
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Pera agreed to buy the Memphis Grizzlies earlier this year from current owner Michael Heisley. The sale is still pending approval through the National Basketball Association.
Shortly after Pera's name surfaced as a potential buyer, questions about his finances started swirling.
He since brought in a group of local owners and Memphis native and entertainer Justin Timberlake to help him buy the team.