Kornit Digital Ltd.
A securities class action has been filed in the USDC – N.J. against Kornit Digital Ltd. (KRNT) on behalf of all persons or entities that purchased or otherwise acquired Kornit ordinary shares between February 17, 2021 through July 5, 2022.
The Complaint alleges that throughout the Class Period, Defendants made numerous materially false and misleading statements and omissions concerning Kornit’s business and operations. Specifically, Defendants repeatedly touted the competitive advantages provided by Kornit’s technology and assured investors that the Company faced virtually no meaningful competition in the “direct-to-garment” printing market. Defendants also assured investors that there was strong demand for Kornit’s digital printing systems and consumable products, such as textile inks, as well as for the services the Company provides customers to maintain and manage its digital printers, and to manage customer workflow. Defendants further assured investors that the strong demand for the Company’s products and services would enable Kornit to maintain its existing customer base and attract new customers that would limit the risks associated with a substantial portion of its revenues being concentrated among a small number of large customers.
On July 5, 2022, Kornit disclosed that it would report a significant revenue shortfall for the second quarter of 2022. Specifically, Kornit expected revenue for the second quarter to be in the range of $56.4 million to $59.4 million, well below the previous revenue guidance of between $85 million and $95 million that the Company provided less than two months earlier. Kornit attributed the substantial revenue miss to “a significantly slower pace of direct-to-garment (DTG) systems orders in the second quarter as compared to our prior expectations.” These disclosures caused the price of Kornit shares to decline by an additional $8.10 per share, or 25.7%.
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Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.
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