RADNOR, Pa., Jan. 12, 2021 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP announces that a second securities fraud class action lawsuit has been filed in the United States District Court for the Northern District of California against Splunk Inc. (NASDAQ: SPLK) (“Splunk”). The second complaint expands the class to include those who purchased or otherwise acquired Splunk common stock between August 26, 2020 and December 2, 2020, inclusive (the “Class Period”).
Important Deadline: Investors who purchased or otherwise acquired Splunk common stock during the Class Period may, no later than February 2, 2021, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation please contact Kessler Topaz Meltzer & Check, LLP (James Maro, Esq. (484-270-1413) or Adrienne Bell, Esq. (484-270-1435)); toll free at (844) 887-9500; via e-mail at info@ktmc.com; or click https://www.ktmc.com/splunk-inc-securities-class-action?utm_source=PR&utm_medium=link&utm_campaign=splunk.
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 for the second complaint commences on August 26, 2020, when Splunk issued a press release announcing its results for the second fiscal quarter of 2021.
October 21, 2020, during an investor conference 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. That same day, Splunk also held an earnings call during which the defendants blamed the terrible results on a “much lower-than-normal close rate among our largest deals, which caused us to fall short of our bookings target.”
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 concealed material information and/or failed to disclose that: (1) Splunk was facing pushback from clients across its largest and most important accounts as it attempted to implement a new pricing model and secure customer renewals; (2) Splunk had failed to close several deals with its largest customers in the third fiscal quarter of 2021; (3) Splunk had fallen far behind previously announced financial targets; and (4) as a result of the foregoing, the defendants lacked a reasoable factual basis to make the statements they made regarding Splunk’s results and operational performance.
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, 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 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 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. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.
CONTACT:
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)
(610) 667-7706
info@ktmc.com