Robbins LLP is Investigating Allegations that Sprout Social, Inc. (SPT) Failed to Disclose It Would Revive its Fiscal Year 2024 Revenue Guidance
Robbins LLP informs investors that a shareholder filed a class action on behalf of persons and entities that purchased or otherwise acquired Sprout Social, Inc. (NASDAQ: SPT) securities between November 2, 2023 and May 2, 2024. Sprout Social is a software company that develops and operates a web-based social media management platform.
The Allegations
According to the complaint, during the class period, defendants failed to disclose to investors: (1) the Company’s sales and revenue growth were not indicative of the Company’s growth as it transitioned to an enterprise sales cycle; (2) that the Company faced integration challenges with its acquisition of Tagger; (3) as a result, the Company was “self inducing sales headwinds;” and (4) as a result, the Company would revise fiscal year 2024 revenue guidance.
On May 2, 2024, Sprout Social announced the Company’s operating results for the first fiscal quarter of 2024, disclosing that the Company had missed its revenue guidance for the quarter, and revising its full year 2024 revenue guidance downward $20 million. The Company’s Chief Financial Officer Joe Del Preto stated the Company had “underestimated the magnitude of enterprise seasonality” and that the Company had also been “self-inducing sales execution headwinds.” On this news, Sprout Social’s stock price fell $19.33, or 40.1%, to close at $28.82 per share on May 3, 2024,
What Now: You may be eligible to participate in the class action against Sprout Social, Inc. Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by July 12, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.