SPT - Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Sprout Social Inc. (SPT)
NEW YORK, July 03, 2024 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Northern District of Illinois on behalf of all persons and entities who purchased securities of Sprout Social, Inc. (“Sprout Social” or the “Company”) (NASDAQ: SPT) between November 2, 2023 and May 2, 2024, inclusive (the “Class Period”).
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company’s sales and revenue growth were not indicative of Sprout’s growth as it transitioned to an enterprise sales cycle; (ii) the Company faced integration challenges with its acquisition of Tagger; (iii) as a result, the Company was “self inducing sales headwinds;” and (iv) thus, the Company would revise fiscal year 2024 revenue guidance.
The Complaint further alleges that on May 2, 2024, the Company disclosed that it had missed its revenue guidance for the first fiscal quarter of 2024 and issued a $20 million downward revision for the Company’s fiscal 2024 results. The Complaint additionally alleges that the Company’s CFO, defendant Joe Del Preto, stated that the Company had “underestimated the magnitude of enterprise seasonality” and that the Company had also “self-induc[ed] sales execution headwinds.” On this news, the price of the Company stock fell more than 40%.
Investors who purchased or otherwise acquired shares of Sprout Social should contact the Firm prior to the July 12, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com .
Please visit our website at http://www.gme-law.com for more information about the firm.