Kessler Topaz Meltzer & Check, LLP: Securities Fraud Class Action Filed Against Splunk Inc. – SPLK
RADNOR, Pa., Dec. 14, 2020 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP announces that a securities fraud class action lawsuit has been filed in the United States District Court for the Northern District of California against Splunk Inc. (NASDAQ: SPLK) (“Splunk”) on behalf of those who purchased or otherwise acquired Splunk common stock between October 21, 2020 and December 2, 2020, inclusive (the “Class Period”).
Important Deadline: Investors who purchased or otherwise acquired Splunk common stock during the Class Period may, no later than February 2, 2021, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation please click https://www.ktmc.com/splunk-inc-securities-class-action?utm_source=PR&utm_medium=link&utm_campaign=splunk.
According to its filings with the SEC, Splunk “provides innovative software solutions that ingest data from different sources including systems, devices and interactions, and turn[s] that data into meaningful business insights across the organization.” Splunk states that its “Data-to-Everything platform enables users to investigate, monitor, analyze and act on data regardless of format or source.”
The Class Period commences on October 21, 2020, when Splunk held a call with several analysts at the Virtual Analyst & Investor Session at .conf.20. On this call, Splunk assured investors that everything was on track for the close of the third quarter, which was just ten days after the call.
However, the truth regarding its third quarter was revealed after the market closed on December 2, 2020, when Splunk announced its financial results for its third fiscal quarter for 2021. In its announcement, Splunk reported total revenues of $559 million, down 11% year-over-year and which missed estimates by nearly $60 million. Furthermore, Splunk announced quarterly non-GAAP earnings per share of -$0.07, missing estimates by $0.15, as well as GAAP earnings per share of -$1.26, missing by $0.24 per share.
Following this news, shares of Splunk common stock fell, closing at $158.03 per share on December 3, 2020, down over 23% from the December 2, 2020 closing price of $205.91 per share.
The complaint alleges that, throughout the Class Period, the defendants misrepresented and/or failed to disclose to investors that: (1) Splunk was not closing deals with its largest customers in the third fiscal quarter of 2021; (2) Splunk was not hitting the financial targets it had previously announced; and (3) as a result of the foregoing, the defendants’ public statements were materially false and misleading at all relevant times.