Anaplan Inc. Class Action Lawsuit
- Company Name
- Anaplan Inc.
- Stock Symbol
- Class Period
- November 21, 2019 to February 26, 2020
- Northern District of California
The Anaplan Inc. class action lawsuit charges Anaplan and certain of its officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Anaplan common stock between November 21, 2019 and February 26, 2020, inclusive (the “Class Period”). The Anaplan class action lawsuit was commenced on August 24, 2020 in the Northern District of California and is captioned Grobler v. Anaplan Inc., No. 20-cv-05959.
Anaplan develops and publishes a cloud platform for business applications that it delivers as a subscription service. According to the Anaplan class action lawsuit, one of the most important financial metrics for investors in analyzing Anaplan’s performance is “calculated billings” – defined as revenue plus the sequential change in total deferred revenue as presented on the balance sheet.
The Anaplan class action lawsuit alleges that during the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Anaplan was undergoing sales organization and execution challenges; (2) these organizational challenges were causing Anaplan to miss on closing very important large deals; and (3) as a result, Anaplan’s financial guidance for “calculated billings” growth was baseless and unattainable. The Anaplan class action lawsuit further alleges that while in possession of this material non-public information, Anaplan insiders sold approximately $30 million worth of Anaplan stock at artificially inflated prices.
On February 27, 2020, Anaplan announced that its calculated billings for the fourth quarter had fallen far short of expectations. Specifically, Anaplan’s billings were only $126 million, representing a growth rate of 25%, which was well below consensus estimates of $138 million, and roughly half of Anaplan’s historical growth rates of 46% to 59%. On this news, Anaplan’s stock price fell more than 24%, damaging investors.
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