Pluralsight, Inc. (PS) Accused of Misleading Shareholders
According to the complaint, for alleged violations of the Securities Exchange Act of 1934 between August 2, 2018 and July 31, 2019, Pluralsight announced an increase in its second quarter billings revenue and stated in its Form 10-Q that after monitoring billings and other business metrics, Pluralsight expected that billings from business customers will be a significant source of future revenue growth. Throughout the relevant period, Pluralsight affirmed its statement and continuously reported increases in its billings growth. However, Pluralsight misled investors by failing to disclose that it was actually experiencing sales execution issues and delays in hiring and training its salesforce, both of which would prevent the company from reaching its high growth projections. As a result of these issues, on July 31, 2019, Pluralsight disclosed that its billings growth had deteriorated from over 40% to just 23% year-over-year and that its Chief Revenue Officer was resigning. Since this news, Pluralsight’s share price has plummeted $14.80 per share, nearly 48%, to close at $15.89.
Pluralsight, Inc. (PS) Shareholders Have Legal Options
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