Sprout Social, Inc.

Registration Deadline:

07/12/2024

A securities class action has been filed in the USDC IL. against Sprout Social, Inc. (SPT) (“Sprout Social” or the “Company”), on behalf of all persons or entities that purchased or otherwise acquired Sprout Social securities between November 2, 2023 and May 2, 2024, both dates inclusive (the “Class Period”).

 

Sprout Social is a software company which develops and operates a web-based social media management platform. The Company’s software offers a centralized platform for customers to manage social media outreach, including integrated tools for social engagement, publishing, reporting, and analytics. The Company generates revenue primarily from subscriptions to this social media management platform under a software-as-a-service model. The Company serves multiple customer cohorts, including public relations, influencer marketing, customer service, small-and-medium-sized businesses, as well as mid-market companies, and enterprise customers.

 

The complaint alleges, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants 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 was “self inducing 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, thereby harming investors.

 

If you purchased Sprout Social securities during the class period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.

 

About Lowey Dannenberg

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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