IRNT.US
id: 1354
IronNet (IRNT) $6.625M Investor Settlement
The settlement terms have been submitted to the court for approval.
E.D. Virginia
Court1:22-cv-00449
Case number09/14/2021
Class period Start12/15/2021
Class period EndIronNet 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
Stipulative Settlement
Alleged Offence
Mismanagement,
Misleading Statements,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.27
Filing date
04/22/2022
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.
Administrator
Strategic Claims Services
Attorney fee
$26,186,250
Trades matching type
FIFO
+$6,625,000
Cash Settlement AmountFrequently 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?
What is 11thestate?