Cognyte Software Ltd.
A securities class action lawsuit has been filed in the USDC – S.D.N.Y. against Cognyte Software LTD (NASDAQ: CGNT)on behalf of purchasers of securities of Cognyte Software Ltd. (NASDAQ: CGNT) between February 2, 2021 and June 28, 2022, both dates inclusive (the “Class Period”). If you wish to serve as lead plaintiff, a motion on your behalf must be filed with the Court no later than May 1, 2023.
The Complaint alleges that, during the Class Period, Defendants misled investors and/or failed to disclose that Cognyte created, distributed, and provided reconnaissance tools and services that violated community standards and terms of service of communication network sources and technologies, such as Facebook, exposing the Company to significant financial and reputational risk.
On December 16, 2021, Meta, the parent company of Facebook, issued a “Threat Report” based on results from its months-long investigation into the surveillance-for-hire industry, revealing that Cognyte (along with six private companies) regularly targeted, without their knowledge, journalists, dissidents, critics of authoritarian regimes, families of opposition, and human rights activists around the world, and collected intelligence on these people by manipulating them to reveal information and/or by compromising their devices and accounts, in violation of Facebook’s multiple community standards and Terms of Service. As a result, Meta disabled Cognyte’s ability to use its platforms, shared its findings with security researchers, other platforms, and policymakers, issued Cease and Desist warnings, and alerted the nearly 50,000 individuals who were believed to be targeted to help them strengthen the security of their accounts.
On this news, the price of Cognyte’s common stock declined 5.11%, from a closing price of $18.97 on December 16, 2021, to a closing price of $18.00 per share on December 17, 2021, before declining another 5.5% the next trading day.
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