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SPT.US
id: 1220
Sprout Social (SPT) Sales Growth Issues Case
N.D. Illinois
Court1:24-cv-03867
Case number02 Nov 2023
Class period Start02 May 2024
Class period End12 Jul 2024
Lead Plaintiff motion deadline- $SPT stockholder filed a claim vs. Sprout Social for misleading about the sales growth and its challenges with the Tagger's acquisition.
- On May 2, 2024, the news about financial results caused $SPT to fall 40%, losing $962M+ in shareholder value.
- Affected $SPT investors may join the claim to be notified about potential recovery.
On May 2, 2024, Sprout Social announced it missed its Q1 revenue target and lowered its 2024 revenue forecast by $20M.
Sprout Social's CFO, Joe Del Preto, admitted they misjudged enterprise sales seasonality and created their own sales problems.
After this news, $SPT fell more than 40%.
Based on these events, $SPT stockholder filed a claim against Sprout Social and its leaders, accusing them of the following:
- Sprout Social's sales growth was misleading due to transition issues and problems with integrating Tagger.
- As a result, Sprout Social faced sales problems and lowered their 2024 revenue forecast.
Considering all the representations, investors have reasons to suspect that Sprout Social misled about the sales growth and its challenges with the Tagger's acquisition.
One of $SPT investors has already filed a claim vs. Sprout Social in the N. D. of Illinois court.
Case Status
Lead Plaintiff Submission
Alleged Offence
Mismanagement,
Misleading Statements,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
03 May 2024
Filing date
13 May 2024
Lead Plaintiff Deadline
12 July 2024
Judge
Lindsay C Jenkins