IronNet, Inc. Class Action Lawsuit - IRNT
- Company Name
- IronNet, Inc.
- Stock Symbol
- Class Period
- September 15, 2021 to December 15, 2021
- Motion Deadline
- June 21, 2022
- Eastern District of Virginia
The IronNet class action lawsuit seeks to represent purchasers of IronNet, Inc. (NYSE: IRNT) securities between September 15, 2021 and December 15, 2021, inclusive (the “Class Period”), and charges IronNet and certain of its top executive officers with violations of the Securities Exchange Act of 1934. The IronNet class action lawsuit was commenced on April 22, 2022 in the Eastern District of Virginia and is captioned Grad v. IronNet, Inc., No. 22-cv-00449.
If you suffered significant losses and wish to serve as lead plaintiff of the IronNet class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at email@example.com. Lead plaintiff motions for the IronNet class action lawsuit must be filed with the court no later than June 21, 2022.
CASE ALLEGATIONS: IronNet designs and develops solutions for cyberattacks. On August 27, 2021, IronNet became a publicly traded company via a merger with LGL Systems Acquisition Corp., a blank check company otherwise known as a special purpose acquisition vehicle (“SPAC”). On August 10, 2021, in anticipation of the merger vote, IronNet updated its financial forecasts “[d]ue to shifts in the anticipated closing of several new customer contracts.” It forecasted fiscal year 2022 (“FY 2022”) (ended January 31, 2022) revenues of $43 million to $45 million and annual recurring revenue (“ARR”) of $75 million, among other things.
The IronNet class action lawsuit alleges that defendants made false and/or misleading statements and/or failed to disclose that: (i) IronNet had materially overstated its business and financial prospects; (ii) IronNet was unable to predict the timing of significant customer opportunities which constituted a substantial portion of its publicly issued FY 2022 financial guidance; (iii) IronNet had not established effective disclosure controls and procedures to reasonably ensure its public disclosures were timely, accurate, complete, and not otherwise misleading; and (iv) as a result, IronNet’s public statements were materially false, misleading, and/or lacked any reasonable basis in fact at all relevant times.
On December 15, 2021, IronNet issued a press release entitled “IronNet Reports Third Quarter Fiscal 2022 Financial Results,” in which it slashed IronNet’s FY 2022 guidance, which had been repeated shortly before the merger vote and which was reaffirmed just months earlier. On the analyst and investor call later that same day, IronNet’s co-CEO, defendant William E. Welch, announced that IronNet had fired its Chief Revenue Officer. On the call, defendants also admitted that, despite having first publicly issued IronNet’s FY 2022 guidance in March 2021, they did not have any confidence as to when substantial revenues underlying the guidance would actually come in. On this news, IronNet’s stock price fell by approximately 31%, damaging investors.
Robbins Geller has launched a dedicated SPAC Task Force to protect investors in blank check companies and seek redress for corporate malfeasance. Comprised of experienced litigators, investigators, and forensic accountants, the SPAC Task Force is dedicated to rooting out and prosecuting fraud on behalf of injured SPAC investors. The rise in blank check financing poses unique risks to investors. Robbins Geller’s SPAC Task Force represents the vanguard of ensuring integrity, honesty, and justice in this rapidly developing investment arena.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased IronNet securities during the Class Period to seek appointment as lead plaintiff in the IronNet class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the IronNet class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the IronNet class action lawsuit. An investor’s ability to share in any potential future recovery of the IronNet class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the 2021 ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors last year alone – more than triple the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 9 offices, Robbins Geller’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.