Investigation of Everbridge, Inc.

Everbridge, Inc. (EVBG) Misled Investors Regarding its Ability to Integrate Recently Purchased Companies and Their Offerings    

A shareholder filed a class action on behalf of persons and entities that purchased or otherwise acquired Everbridge, Inc. (NASDAQ: EVBG) securities between November 4, 2019 and February 24, 2022, for violations of the Securities Exchange Act of 1934.  Everbridge is a global software company that provides enterprise software applications to automate and accelerate organizations’ operational response to “critical events” in order to keep people safe and organizations running.

According to the complaint, Everbridge acquired nine companies shortly before and during the class period.  Throughout the class period, defendants misled investors regarding Everbridge’s ability to integrate the new acquisitions and its expectations of revenue growth.

The truth about Everbridge’s failings was partially revealed on December 9, 2021, when the Company disclosed the resignation of its CEO, without providing a reason for the decision. That same day, the Company provided 2022 revenue growth guidance of between 20%-23%, well below the expected baseline of 30%.  On this news, Everbridge’s common stock fell over 45%, or $52.37 per share.

Then, on February 24, 2022, Everbridge announced disappointing financial results for the fourth quarter and full year 2021, and even lower guidance for the first quarter and full year 2022.  In so doing, one new interim co-CEO revealed the integration challenges resulting from the buying binge and noted that Everbridge will pause engaging in any new M&A activity to focus on product integration, as well as significantly “simplify” and reduce its product offerings.  The other interim co-CEO noted that focus on product integration and simplification would alone result in an approximate $17 million of revenue loss and the decline in deal sizes would result in another $15 million reduction in revenues. On this news, Everbridge’s common stock price fell another $15.68 per share, or 33.9%, to close at $30.61 per share on February 25, 2022.

Next Steps: If you acquired shares of Everbridge, Inc. (EVBG) between November 4, 2019 and February 24, 2022, you have until June 3, 2022, to ask the court to appoint you lead plaintiff for the class.  A lead plaintiff is a representative party acting 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.   

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

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