NEW YORK, March 02, 2023 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased the securities of Cognyte Software Ltd. (“Cognyte” or the “Company”) (NASDAQ: CGNT) between February 2, 2021 and June 28, 2022, both dates inclusive (the “Class Period”).
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that Cognyte created, distributed, and provided reconnaissance tools and services that violated community standards and terms of service of communication network sources and technologies, like Facebook, exposing the Company to significant financial and reputational risk.
On December 16, 2021, Meta Platforms Inc., the parent company of Facebook and Instagram, issued a “Threat Report” which revealed that Cognyte “sells access to its platform which enables managing fake accounts across social media platforms including Facebook, Instagram, YouTube, and VKontakte (VK), and other websites to social-engineer people and collect data.” This conduct “violated multiple Community Standards and Terms of Service,” and “[g]iven the severity of their violations,” Meta disabled Cognyte’s ability to use its platforms, among other things. On this news, Cognyte’s common stock price declined more than 5%.
Then, on April 5, 2022, Cognyte revealed that it was forced to modify its solutions in response to the Threat Report. Cognyte also announced disappointing financial results and guidance. On this news, Cognyte’s common stock price declined more than 31%.
Finally, on June 28, 2022, Cognyte released its first quarter 2022 financial results which badly missed analyst estimates across the board. Analysts immediately downgraded Cognyte’s rating and reduced price targets. On this news, Cognyte’s common stock price declined more than 28%, further damaging investors.
Investors who purchased or otherwise acquired shares of Cognyte should contact the Firm prior to the May 1, 2023 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.