BENSALEM, Pa., Nov. 18, 2019 (GLOBE NEWSWIRE) -- Law Offices of Howard G. Smith reminds investors of the upcoming December 23, 2019 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased Zendesk, Inc. (“Zendesk” or the “Company”) (NYSE: ZEN) securities between February 6, 2019 and October 1, 2019, inclusive (the “Class Period”).
Investors suffering losses on their Zendesk 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 howardsmith@howardsmithlaw.com.
On July 30, 2019, Zendesk reported net loss of $54.5 million for second quarter 2019 and disclosed that sales growth in Europe, Middle East, and Africa and Asia-Pacific regions “didn’t quite live up to [the Company’s] own expectations, and lagg[ed] other regions.” As a result, Zendesk expected ongoing revenue growth of just 30%.
On this news, the Company’s stock price fell $9.56, or over 10%, to close at $83.56 per share on July 31, 2019, thereby injuring investors.
Then, on October 2, 2019, the Company disclosed that a data breach impacted customers who had signed up before November 2016.
On this news, Zendesk share price dropped $2.90, or nearly 4%, closing at $69.81 on October 2, 2019, 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: (1) that Zendesk's clients had been subject to data breaches dating back to 2016; (2) that Zendesk was experiencing slowing demand for its Software as a Service offerings, particularly in Germany, the United Kingdom, and Australia, due in large part to political uncertainty and China trade issues there; and (3) that as a result of the foregoing, Zendesk's business metrics and financial prospects were not as strong as defendants had led the market to believe during the Class Period.
If you purchased Zendesk securities during the Class Period you may move the Court no later than December 23, 2019 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you 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 howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com