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Sprout Social, Inc. Class Action Lawsuit - SPT

47 days left to seek lead plaintiff status

Case Summary

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The Sprout Social class action lawsuit seeks to represent purchasers or acquirers of Sprout Social, Inc. (NASDAQ: SPT) securities between November 2, 2023 and May 2, 2024, inclusive (the “Class Period”).  Captioned Munch v. Sprout Social, Inc., No. 24-cv-03867 (N.D. Ill.), the Sprout Social class action lawsuit charges Sprout Social and certain of Sprout Social’s top executives with violations of the Securities Exchange Act of 1934.

If you suffered substantial losses and wish to serve as lead plaintiff of the Sprout Social class action lawsuit, please provide your information in the form on this page.  You can also contact attorney J.C. Sanchez or Jennifer N. Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at info@rgrdlaw.com. Lead plaintiff motions for the Sprout Social class action lawsuit must be filed with the court no later than July 12, 2024.

CASE ALLEGATIONS: Sprout Social is a software company which develops and operates a web-based social media management platform.

The Sprout Social class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Sprout Social’s sales and revenue growth were not indicative of Sprout Social’s growth as it transitioned to an enterprise sales cycle; (ii) Sprout Social faced integration challenges with its acquisition of Tagger; (iii) as a result, Sprout Social was “self inducing sales headwinds;” and (iv) thus, Sprout Social would revise fiscal year 2024 revenue guidance.

The Sprout Social class action lawsuit further alleges that on May 2, 2024, Sprout Social disclosed that it had missed its revenue guidance for the first fiscal quarter of 2024 and issued a $20 million downward revision for Sprout Social’s fiscal 2024 results.  The complaint additionally alleges that Sprout Social’s CFO, defendant Joe Del Preto, stated that Sprout Social had “underestimated the magnitude of enterprise seasonality” and that Sprout Social had also “self-induc[ed] sales execution headwinds.”  On this news, the price of Sprout Social stock fell more than 40%, according to the Sprout Social class action lawsuit.

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Sprout Social securities during the Class Period to seek appointment as lead plaintiff in the Sprout Social 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 Sprout Social class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Sprout Social class action lawsuit.  An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Sprout Social class action lawsuit.

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 was ranked #1 on the ISS Securities Class Action Services Top 50 Report for recovering more than $1.75 billion for investors in 2022 – the third year in a row Robbins Geller topped the list.  And in those three years alone, Robbins Geller recovered nearly $5.3 billion for investors, more than double the amount recovered by any other plaintiffs’ firm.  With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’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.

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