INVESTOR ALERT: Law Offices of Howard G. Smith Announces the Filing of a Securities Class Action on Behalf of Cognyte Software Ltd. (CGNT) Investors
Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Cognyte Software Ltd. ("Cognyte" or the "Company") (NASDAQ: CGNT) common stock between February 2, 2021 and June 28, 2022, inclusive (the "Class Period"). Cognyte investors have until May 1, 2023 to file a lead plaintiff motion.
Investors suffering losses on their Cognyte investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to [email protected].
On December 16, 2021, after the market closed, a "Threat Report" issued by Meta Platforms, Inc., which included the results of a months-long investigation into the "surveillance-for-hire industry," revealed that Cognyte regularly targeted journalists, dissidents, critics of authoritarian regimes, families of opposition, and human rights activists around the world, without their knowledge, and collected intelligence on these people by manipulating them to reveal information and/or by compromising their devices and accounts, in violation of Facebook's "multiple community standards and Terms of Service." Specifically, the report stated that Cognyte "sells access to its platform which enables managing fake accounts across social media platforms including acebook, Instagram, Twitter, YouTube, and VKontakte (VK), and other websites to social-engineer people and collect data."
On this news, Cognyte's stock price fell $1.96, or 10.3%, over the next two consecutive trading days to close at $17.01 per share on December 20, 2021, thereby injuring investors.
Then, on April 5, 2022, Cognyte issued its 2021 Annual Report, disclosing that the Company was forced to modify its solutions in response to the Threat Report, "which impacted the manner [its] customers [could] use these solutions." Additionally, the Company missed analyst consensus estimates for the fourth quarter 2021 for non-GAAP earning per share and sales, and significantly undershot the midpoint of its guidance range by several millions of dollars.
On this news, Cognyte's stock price fell $3.63, or 31.1%, to close at $8.03 per share on April 5, 2022.
Then, on June 28, 2022, Cognyte released its first quarter 2022 financial results, missing analyst estimates across the board, including a revenue decline of 25%.
On this news, Cognyte's stock price fell $1.84, or 28.7%, to close at $4.58 per share on June 28, 2022, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Cognyte created, distributed, and provided reconnaissance tools and services that violated community standards and terms of service of communication network sources and technologies, like Facebook, exposing the Company to significant financial and reputational risk; and (2) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased Cognyte common stock, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to [email protected], or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230315005911/en/