| 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 |
| SECURITY TYPE |
Securities |
LEAD PLAINTIFF DEADLINE IS JULY 12, 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 info@ktmc.com.
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.