Equinix Hit With Shareholder Lawsuit Over Accounting Claims

Equinix Inc. was sued by a shareholder over allegations the data center real estate investment trust manipulates its accounting for a key profitability metric.

The proposed class action, filed Thursday in the US District Court for the Northern District of California, draws on a report released in March by short-seller Hindenburg Research, which bet against Equinix shares. Real estate investment trusts, which own income-producing real estate, have been a popular target for short-sellers in recent months amid a downturn in office prices and high interest rates.

Hindenburg’s report said Equinix misclassified operational costs as investments in new facilities or ...