Sprout Social (SPT) Sales Growth Issues Case

N.D. Illinois

Court

1:24-cv-03867

Case number

11/02/2023

Class period Start

05/02/2024

Class period End

07/12/2024

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

05/03/2024

Filing date

05/13/2024

Lead Plaintiff Deadline

07/12/2024

Judge

Lindsay C Jenkins

Sprout Social (SPT) Sales Growth Issues Case

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