Robbins LLP Informs Investors that Sprout Social, Inc. (SPT) Beat the Motion to Dismiss

Robbins LLP informs investors that on October 6, 2026, the plaintiffs in the class action against Sprout Social (NASDAQ: SPT) beat defendants’ motion to dismiss the complaint. Accordingly, the stay of the case was lifted and the parties are to submit a proposed schedule for the completion of fact and expert discovery.

The class action was initially filed on behalf of persons and entities that purchased or otherwise acquired Sprout Social securities between November 2, 2023 and May 2, 2024, inclusive (the “Class Period”).

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: Shareholders who purchased Sprout Social, Inc. shares prior to the Class Period have rights. Submit a form for more information.

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