Shareholders with losses of $1,000,000 or more are encouraged to contact the firm.
The Law Offices of Frank R. Cruz reminds investors of the upcoming May 1, 2023 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who acquired Cognyte Software Ltd. (“Cognyte” or the “Company”) (NASDAQ: CGNT) common stock between February 2, 2021 and June 28, 2022, inclusive (the “Class Period”).
If you are a shareholder who suffered a loss, click here to participate.
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 Facebook, 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.
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If you purchased or otherwise acquired Cognyte common stock during the Class Period, you may move the Court no later than May 1, 2023 to request appointment as lead plaintiff in this putative class action lawsuit. 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 the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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