RADNOR, Pa., June 22, 2024 /PRNewswire/ — The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been filed in the United States District Court for the Northern District of Illinois against Sprout Social, Inc. (“Sprout Social”) (NASDAQ: SPT). The action charges Sprout Social with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company’s business, operations, and prospects. As a result of Sprout Social’s materially misleading statements and omissions to the public, Sprout Social’s investors have suffered significant losses.
If you suffered Sprout Social losses, you may CLICK HERE or go to: https://www.ktmc.com/new-cases/sprout-social-inc?utm_source=PR&utm_medium=link&utm_campaign=spt&mktm=r
You can also contact attorney Jonathan Naji, Esq. of Kessler Topaz by calling (484) 270-1453 or by email at [email protected]. The lead plaintiff deadline is July 12, 2024.
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DEFENDANTS’ ALLEGED MISCONDUCT
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.
WHAT CAN I DO?
Sprout Social investors may, no later than July 12, 2024, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages Sprout Social investors who have suffered significant losses to contact the firm directly to acquire more information. The class action complaint against Sprout Social, Munch v. Sprout Social, Inc., et al., Case No. 24-cv-03867, is filed in the United States District Court for the Northern District of Illinois.
CLICK HERE TO SIGN UP FOR THE CASE or go to: https://www.ktmc.com/new-cases/sprout-social-inc?utm_source=PR&utm_medium=link&utm_campaign=spt&mktm=r
WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
Jonathan Naji, Esq.
(484) 270-1453
280 King of Prussia Road
Radnor, PA 19087
[email protected]
May be considered attorney advertising in certain jurisdictions. Past results do not guarantee future outcomes.
SOURCE Kessler Topaz Meltzer & Check, LLP
