| COMPANY |
Kornit Digital Ltd. |
| COURT |
United States District Court for the District of New Jersey |
| CASE NUMBER |
23-cv-00888 |
| JUDGE |
The Hon. Madeline Cox Arleo |
| CLASS PERIOD |
February 17, 2021 and July 5, 2022 |
| SECURITY TYPE |
Securities |
Kornit investors may receive additional information about the case by clicking the link "Submit Your Information" above. If you are a member of the class described below, you may no later than April 17, 2023 move the Court to serve as lead plaintiff of the class, if you so choose.
A class action lawsuit has been filed on behalf of those who purchased or acquired Kornit Digital Ltd. (“Kornit”) (NASDAQ: KRNT) securities between February 17, 2021 and July 5, 2022, both dates inclusive (the “Class Period”).
Case Background:
On May 11, 2022, Kornit released its first quarter 2022 financial results, reporting a net loss of $5.2 million and lowering second quarter revenue expectations by $13 million. Kornit blamed a slowdown in orders in the e-commerce segment while also revealing that one of its largest customers had decided to acquire digital printing systems from one of Kornit’s competitors. Following this news, Kornit’s stock price fell $18.78, or 33.3%, to close at $37.63 per share on May 11, 2022.
Then, on July 5, 2022, after the market closed, Kornit released its preliminary financial results for the second quarter of 2022, disclosing a significant revenue shortfall during the quarter. Instead of previous guidance expectations of $85 million to $95 million, Kornit estimated a range of $56.4 million to $59.4 million. Following this news, Kornit’s stock price fell $8.10, or 25.7%, to close at $23.46 per share on July 6, 2022.
The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Kornit’s digital printing business was beset by significant quality control problems and deficient customer service; (2) as a result, Kornit was more vulnerable to pressure from competitors than it had represented and lacked the competitive advantages it touted to investors; and (3) as a result of the foregoing, Kornit lost market share to competitors, which led to a decline in the company’s revenues, as Kornit’s dissatisfied customers sought out alternative options for their digital printing needs.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jonathan Naji, Esq. (484) 270-1453 or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.