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KIND.US
id: 1122
Nextdoor (KIND) Poor Post-Merger Growth Case
N.D. California
Court5:24-cv-1213
Case number06 Jul 2021
Class period Start08 Nov 2022
Class period End29 Apr 2024
Lead Plaintiff motion deadline- $KIND stockholder filed a claim vs. Nextdoor for overstating post-merger market size and its growth prospects.
- In November 2022, the poor financial results caused $KIND to fall 11%, losing $47M+ in shareholder value.
On March 1, 2022, Nextdoor (KIND) announced the first disappointing post-merger financial results. The growth rate dropped to 48% from 66% year-over-year, contrary to earlier claims of sustained growth.
- Then, on May 10, 2022, Nextdoor said global user growth rose by just 1%, but U.S. users fell by 100,000. This caused a $KIND 8% drop.
- On August 9, 2022, Nextdoor revealed revenue growth slowed to 19% year-over-year, with U.S. weekly active users decline. On this news, $KIND dropped by about 25%.
Finally, on November 8, 2022, Nextdoor reported a $1M revenue drop and $KIND fell around 11%.
In total, $KIND dropped almost 90% from its post-merger high, leading to significant losses for investors.
Based on these events, $KIND stockholder filed a claim against Nextdoor and its leaders in the N.D. California court, accusing them of the following:
- Before the merger, Nextdoor's finances looked better due to COVID-19's impact, affecting future revenue.
- Nextdoor's growth slowed and the market size was smaller than claimed.
Considering all the representations, investors have reasons to suspect that Nextdoor misled them about the company's prospects and financial state.
Case Status
Lead Plaintiff Appointed
Alleged Offence
Mismanagement,
Misleading Statements,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
09 November 2022
Filing date
28 February 2024
Lead Plaintiff Deadline
29 April 2024