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Sprout Social, Inc. (NASDAQ: SPT) Securities Fraud Class Action

COMPANY       Sprout Social, Inc. 
COURT United States District Court for the Northern District of Illinois
CASE NUMBER 24-cv-003867
JUDGE The Hon. Lindsay Clayton Jenkins
CLASS PERIOD  November 2, 2023 through May 2, 2024


If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at

Case Background:

A class action lawsuit has been filed on behalf of those who purchased or acquired Sprout Social, Inc. (“Sprout Social”) (NASDAQ: SPT) securities between November 2, 2023 and May 2, 2024, both dates inclusive (the “Class Period”). 

On May 2, 2024, Sprout Social announced the company's operating results for the first fiscal quarter of 2024, disclosing that Sprout Social had missed its revenue guidance for the quarter and revised its full year 2024 revenue guidance downward by $20 million. In addressing the results, Sprout Social's CFO said that the company had "underestimated the magnitude of enterprise seasonality" and had also been "self-inducing sales execution headwinds." During the accompanying earnings call held that same day, Sprout Social's incoming CEO additionally disclosed that Sprout Social "made several important strategic decisions heading into Q1" which it "thought [it] could manage [] without disruption, but they collectively set us back."

On this news, Sprout Social's stock price fell $19.33 per share, or 40.15%, to close at $28.82 per share on May 3, 2024.

The complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Sprout Social's sales and revenue growth were not indicative of Sprout Social's growth as it transitioned to an enterprise sales cycle; (2) Sprout Social faced integration challenges with its acquisition of Tagger Media, Inc.; (3) as a result, Sprout Social was "self-inducing sales headwinds;" (4) as a result, Sprout Social would revise fiscal year 2024 revenue guidance; (5) as a result of the foregoing, Defendants' positive statements about Sprout Social's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

What is a Lead Plaintiff?

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.

Complete this form with your transactions in Sprout Social, Inc. securities between November 2, 2023 and May 2, 2024.

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# of Shares
Price per Share
Principal Amount
Amount Paid
Series or CUSIP
# of Contracts
Price per Contract
Exercise Price
Expiration Date
Did you purchase shares of Sprout Social, Inc. prior to the Class Period?
Are you a current or former employee of Sprout Social, Inc. ?
The submission of this form does not create an attorney-client relationship, nor an obligation on the part of Kessler Topaz or you to file a lead plaintiff motion in this matter. Any information you submit will be maintained as confidential. If Kessler Topaz, in its sole discretion, believes that you might be an appropriate lead plaintiff candidate, Kessler Topaz will contact you to discuss the matter and whether to establish an attorney client relationship. By signing this form you are authorizing us to contact you regarding this case and/or future cases.
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