SAN DIEGO, June 24, 2024 (GLOBE NEWSWIRE) — Robbins LLP reminds investors that a class action lawsuit has been filed by a shareholder on behalf of individuals and entities who purchased or otherwise acquired securities of Sprout Social, Inc. (NASDAQ: SPT) between November 2, 2023 and May 2, 2024. Sprout Social is a software company that develops and operates a web-based social media management platform.
For more information, submit a form, email Attorney Aaron Dumas, Jr., or call us at (800) 350-6003.
The accusations: Robbins LLP is investigating allegations that Sprout Social, Inc. (SPT) failed to disclose that the company would revise its fiscal year 2024 revenue guidance due to challenges.
According to the complaint, during the Class Period, defendants failed to disclose to investors: (1) that the Company’s revenue and earnings growth was not sufficiently representative of the Company’s growth as it transitioned to an enterprise-wide sales cycle; (2) that the Company faced integration issues following the Tagger acquisition; (3) that the Company faced “self-inflicted revenue headwinds” as a result; and (4) that the Company would revise its fiscal year 2024 revenue guidance as a result.
On May 2, 2024, Sprout Social announced the Company’s operating results for the first fiscal quarter of 2024 and disclosed that the Company missed its revenue guidance for the quarter. It also revised its full-year 2024 revenue guidance downward by $20 million. The Company’s Chief Financial Officer Joe Del Preto stated that the Company “underestimated the extent of the Company’s seasonality” and that the Company also experienced “self-inflicted headwinds in sales execution.” Following this news, Sprout Social’s stock price fell $19.33, or 40.1%, to close at $28.82 per share on May 3, 2024.
What now: You may be eligible to participate in the class action lawsuit against Sprout Social, Inc. Shareholders who wish to serve as lead plaintiff for the class action must file their motions with the Court by July 12, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for compensation. If you choose not to take action, you may remain an absent class member. For more information, click here Here.
Representation is on a contingency basis. Shareholders pay neither fees nor expenses.
About Robbins LLP: Some law firms issuing press releases on this matter do not litigate securities class actions; Robbins LLP does. As a recognized leader in shareholder litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures and hold corporate executives accountable for wrongdoing since 2002. Since our founding, we have recovered more than $1 billion for shareholders.
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