SHAREHOLDER ALERT: Kessler Topaz Meltzer & Check, LLP Announces Securities Fraud Class Action Lawsuit Filed Against Splunk Inc.
Jan 26, 2021 3:48 PM ET
Legal Newswire POWERED BY LAW.COM
The law firm of Kessler Topaz Meltzer & Check, LLP reminds Splunk Inc. investors that a securities fraud class action lawsuit has been filed on behalf of those who purchased or otherwise acquired Splunk common stock between October 21, 2020 and December 2, 2020, inclusive (the "Class Period").
According to its filings with the SEC, Splunk "provides innovative software solutions that ingest data from different sources including systems, devices and interactions, and turn[s] that data into meaningful business insights across the organization." Splunk states that its "Data-to-Everything platform enables users to investigate, monitor, analyze and act on data regardless of format or source."
The Class Period commences on October 21, 2020, when Splunk held a call with several analysts at the Virtual Analyst & Investor Session at .conf.20. On this call, Splunk assured investors that everything was on track for the close of the third quarter, which was just ten days after the call.
However, the truth regarding its third quarter was revealed after the market closed on December 2, 2020, when Splunk announced its financial results for its third fiscal quarter for 2021. In its announcement, Splunk reported total revenues of $559 million, down 11% year-over-year and which missed estimates by nearly $60 million. Furthermore, Splunk announced quarterly non-GAAP earnings per share of -$0.07, missing estimates by $0.15, as well as GAAP earnings per share of -$1.26, missing by $0.24 per share.
Following this news, shares of Splunk common stock fell, closing at $158.03 per share on December 3, 2020, down over 23% from the December 2, 2020 closing price of $205.91 per share.
The complaint alleges that, throughout the Class Period, the defendants misrepresented and/or failed to disclose to investors that: (1) Splunk was not closing deals with its largest customers in the third fiscal quarter of 2021; (2) Splunk was not hitting the financial targets it had previously announced; and (3) as a result of the foregoing, the defendants' public statements were materially false and misleading at all relevant times.
Investors who wish to discuss this securities fraud class action lawsuit and their legal options are encouraged to contact Kessler Topaz Meltzer & Check, LLP (James Maro, Jr., Esq. or Adrienne Bell, Esq.) at (844) 887-9500 (toll free) or at [email protected]
Splunk investors may, no later than February 2, 2021, 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. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). 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.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(844) 887-9500 (toll free)
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