LITIGATION DEADLINE NASDAQ SPT BFA Law Reminds Investors of Upcoming Deadline in Lawsuit Against Sprout Social

Rhea-AI Summary

On May 13, 2024, Sprout Social (NASDAQ: SPT) was sued for alleged violations of federal securities laws. The lawsuit claims that between November 2, 2023, and May 2, 2024, the company did not disclose critical information about its business. This includes misleading statements regarding sales and revenue growth, integration challenges with the acquisition of Tagger, and subsequent 'sales headwinds' affecting 2024 revenue guidance. Following these revelations, Sprout Social's stock fell by approximately 40%. Bleichmar Fonti & Auld LLP is representing the plaintiffs and encouraging investors to seek further information and potential representation to lead the case.

Positive

• Bleichmar Fonti & Auld LLP is a highly reputable law firm with a successful track record, having recovered significant sums for clients in past securities litigations.

Negative

• Sprout Social is facing a lawsuit for alleged violations of federal securities laws.
• The company is accused of failing to disclose critical business challenges, including sales and revenue growth issues and integration problems with its acquisition of Tagger.
• Sprout Social had to revise its fiscal year 2024 revenue guidance.
• The company's stock declined approximately 40% following the lawsuit announcement.

NEW YORK, NY / ACCESSWIRE / May 15, 2024 / If you invested in Sprout Social, you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases/sprout-social-inc-investigation or contacting us below.

Why is SPT being Sued?

On May 13, 2024, Sprout Social was sued for violations of the federal securities laws. The Complaint alleges that between November 2, 2023 and May 2, 2024 Spout Social failed to disclose to investors: (1) the Company's sales and revenue growth were not indicative of the Company's growth as it transitioned to an enterprise sales cycle; (2) that the Company faced integration challenges with its acquisition of Tagger; (3) as a result, the Company faced "sales headwinds;" (4) as a result, the Company would revise fiscal year 2024 revenue guidance; and (5) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Sprout Social's stock declined approximately 40% the following day. BFA is investigating whether Sprout Social and its executives made materially false and/or misleading statements to investors.

Click here https://www.bfalaw.com/cases/sprout-social-inc-investigation for more details.

What Can You Do?

If you invested in Sprout Social, Inc. you may be eligible to lead the case on behalf of shareholders.

All representation is on a contingency fee basis, there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses.

To speak with an attorney for more information visit:

https://www.bfalaw.com/cases/sprout-social-inc-investigation

Or contact us at:

Ross Shikowitz
ross@bfalaw.com
212-789-3619

Why Bleichmar Fonti & Auld LLP?

Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in securities class actions and shareholder derivative litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs' Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.'s Board of Directors (pending court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.

For more information about BFA and its attorneys, please visit https://www.bfalaw.com.

Attorney advertising. Past results do not guarantee future outcomes.

SOURCE: Bleichmar Fonti & Auld LLP

View the original press release on accesswire.com

FAQ

Why is Sprout Social (NASDAQ: SPT) being sued?

Sprout Social is being sued for alleged violations of federal securities laws, including failing to disclose sales growth issues, integration challenges with its Tagger acquisition, and revising its 2024 revenue guidance.

What happened to Sprout Social's stock after the lawsuit announcement?

Sprout Social's stock declined approximately 40% following the lawsuit announcement.

What are the allegations against Sprout Social?

The allegations include failing to disclose sales and revenue growth issues, integration challenges with Tagger, and misleading statements about the company's business and prospects.

When was the lawsuit against Sprout Social filed?

The lawsuit was filed on May 13, 2024.

What time period does the Sprout Social lawsuit cover?

The lawsuit covers the period between November 2, 2023, and May 2, 2024.