IronNet (IRNT) $6.625M Investor Settlement

E.D. Virginia

Court

1:22-cv-00449

Case number

14 Sept 2021

Class period Start

15 Dec 2021

Class period End

IronNet has agreed to a $6.625M settlement with $IRNT investors over claims that it overstated its financial outlook and missed key customer deals critical to its 2022 forecasts.

Outline

The lawsuit claims IronNet misled investors by providing overly optimistic financial projections and failing to disclose delays in key contracts crucial to its revenue targets. This resulted in an inflated stock price, which later dropped by 31% on December 15, 2021, when the company slashed its revenue forecasts.

Timeline
August 27, 2021: IronNet became a publicly traded company by merging with a special purpose acquisition company (SPAC).
September 14, 2021: IronNet releases an optimistic revenue forecast, boosting the stock price by 38%.
December 15, 2021: IronNet cuts its revenue forecast for 2022, leading to a 31% stock drop.Background
Background

IronNet positioned itself as a leader in cybersecurity, with several large strategic contracts, particularly in the U.S. public sector, expected to drive its revenue growth. However, many of these critical contracts were delayed due to government funding issues, which significantly impacted the company’s ability to meet its financial projections for 2022. Despite knowing about these delays, IronNet continued to assure investors of its strong financial outlook. When the company was forced to remove these contracts from its revenue forecasts in December 2021, the stock dropped sharply by 31%, leading to investor losses.

What can investors expect now?

IronNet has agreed to settle for $6.625 million to resolve all claims related to misleading statements made about its financial outlook and key contract delays. The parties will now work to finalize the settlement terms and submit them to the court for approval.

If this situation financially harmed you, you can file a claim to receive your portion of the settlement. For eligibility details and other information, you can check the FAQ section below

Case Status

Tentative Settlement

Alleged Offence

Mismanagement,

Misleading Statements,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Filing date

22 April 2022

Plaintiffs

Adam Grad

Attorneys

Bernstein Liebhard LLP (New York, NY), The Kaplan Law Firm (Arlington, VA)

Defendants

Keith B. Alexander, James C. Gerber, William E. Welch,

Judge

Hon. Rossie D. Alston, Jr.

Trades matching type

FIFO

+$6,625,000

Cash Settlement Amount

Frequently Asked Questions

When will you be able to apply for the payment?

Do I have to sell securities to be eligible?

How long does the payout process take?

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