NEW YORK, Aug. 14, 2024 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired Sprinklr, Inc. (“Sprinklr” or the “Company”) (NYSE: CXM) securities between March 29, 2023 and June 5, 2024, inclusive (the “Class Period”). The lawsuit seeks to recover damages for the Company’s investors under the federal securities laws.
The Complaint in the lawsuit alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose the fact that the Company at the current time did not have adequate forecasting processes. The Complaint also alleges that Defendants provided these overwhelmingly positive statements to investors while, at the same time, disseminating materially false and misleading statements and/or concealing material adverse facts concerning the difficulties in the implementation of scaling in the CCaaS market and the resulting growth slowdown on their existing “go-to-market” initiatives associated with Sprinklr’s core suite of products, which collectively caused Plaintiff and other shareholders to purchase Sprinklr’s securities at artificially inflated prices.
The Complaint further alleges that the truth emerged on December 6, 2023, during Sprinklr’s earnings call following a same day press release announcing its strong third quarter earnings. The Complaint alleges that in pertinent part, Defendants announced a sequential decrease in the total number of customers spending more than $1 million, attributing it to macroeconomic conditions. The Complaint also alleges that additionally, Sprinklr reduced its estimated growth for the fourth quarter and fiscal year 2025 (ending January 31, 2025). The Complaint further alleges that, Defendants reduced the outlook for fiscal 2025 from consensus expectations of 16% growth down to only 10%.
According to the Complaint, the price of Sprinklr’s common stock declined dramatically. The complaint alleges from a closing market price of $16.70 per share on December 6, 2023, Sprinklr’s stock price fell to $11.11 per share on December 7, 2023, a decline of more than 33% in the span of just a single day.
Investors who purchased or otherwise acquired shares of Sprinklr should contact the Firm prior to the October 15, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
