ON24, Inc. Class Action Lawsuit - ONTF
- Company Name
- ON24, Inc.
- Stock Symbol
- Motion Deadline
- January 2, 2022
- Northern District of California
The ON24 class action lawsuit charges ON24, Inc. (NYSE: ONTF), certain of ON24’s officers and directors, as well as the underwriters of ON24’s February 3, 2021 initial public offering (“IPO”) with violations of the Securities Act of 1933. Filed in the Northern District of California on November 3, 2021 and captioned Douvia v. ON24, Inc., No. 21-cv-08578, the ON24 class action lawsuit seeks to represent purchasers of ON24 common stock issued in connection with the IPO.
If you wish to serve as lead plaintiff of the ON24 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 ON24 class action lawsuit must be filed with the court no later than January 3, 2022.
CASE ALLEGATIONS: ON24 offers a cloud-based digital experience platform that enables businesses to convert customer engagement into revenue through interactive webinar experiences, virtual event experiences, and multimedia content experiences. On or about February 3, 2021, ON24 conducted its IPO, offering 8,560,930 shares of its common stock to the public at a price of $50 per share for anticipated proceeds of approximately $428 million.
The ON24 class action lawsuit alleges that ON24’s offering documents representations were materially inaccurate, misleading, and/or incomplete because they failed to disclose, among other things, that the surge in COVID-19 customers ON24 observed in the lead up to the IPO consisted of a significant number that did not fit ON24’s traditional customer profile and, as a result, were significantly less likely to renew their contracts.
On August 10, 2021, ON24 offered revenue guidance for the remainder of the year of no more than $48.5 million in third quarter 2021 and $204.2 million for fiscal year 2021, missing analyst consensus by $2.7 million and $4.5 million, respectively. During ON24’s analyst call held that same day, ON24’s President and CEO, defendant Sharat Sharan, admitted that ON24 “experienced higher than expected churn and down-sell from customers [it] signed up in the second quarter of last year during the peak of COVID.” He then added, “[t]his higher churn was primarily in the first-time renewal cohort, customers who signed . . . one-year contracts last year and who are up for renewal.” On this news, ON24’s stock price declined approximately 31%, damaging investors.
By the commencement of the ON24 class action lawsuit, ON24 stock traded as low as $18.66 per share, a nearly 63% decline from the $50 per share IPO price.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased ON24 common stock issued in connection with ON24’s IPO to seek appointment as lead plaintiff in the ON24 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 ON24 class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the ON24 class action lawsuit. An investor’s ability to share in any potential future recovery of the ON24 class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions. Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm.