A lawsuit was filed on behalf of investors in Zendesk, Inc. (NYSE: ZEN) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 11/05/2019 -- An investor, who purchased NYSE: ZEN shares, filed a lawsuit over alleged Securities Laws violations by Zendesk, Inc.
Investors who purchased shares of Zendesk, Inc. (NYSE: ZEN) have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
San Francisco, CA based Zendesk, Inc., a software development company, provides SaaS products for organizations. On July 30, 2019, Zendesk announced its financial results for the second quarter of 2019. In addition, Zendesk disclosed that its sales growth in the Europe, Middle East, and Africa ("EMEA") and Asia-Pacific ("APAC") regions "didn't quite live up to [defendants'] own expectations, and lagg[ed] other regions." Zendesk blamed a mix of macro and operational issues that had been driving the weakness. With respect to fiscal 2019 guidance, the Company cautioned that it was "maintaining a prudent view on the year as [defendants] gain[ed] a better understanding of the dynamics, internal and external, in EMEA and APAC," and thus expected ongoing revenue growth of just 30%. Following these disclosures, the price of Zendesk common stock declined precipitously, falling nearly $10 per share to close at $83.56 per share on July 31, 2019.
Prior to September 24, 2019, a third party alerted Zendesk to the fact that the personally identifiable data of its chat and support accounts had been breached. By September 24, 2019, the Company's internal investigation had revealed that some 10,000 accounts opened before November 2016 had been breached.
On October 2, 2019, Zendesk disclosed that it had experienced a data breach in 2016 involving 10,000 accounts that were activated prior to November 1, 2016. Following this news, the price of Zendesk stock fell approximately $2.00 per share, closing down at $69.81 per share on October 2, 2019.
The plaintiff claims that between February 6, 2019 and October 1, 2019, the Company concealed material information and/or failed to disclose that Zendesk's clients had been subject to data breaches dating back to 2016, Zendesk was experiencing slowing demand for its SaaS offerings, particularly in Germany, the United Kingdom, and Australia, due in large part to political uncertainty and China trade issues there, and that as a result of the foregoing, Zendesk's business metrics and financial prospects were not as strong as defendants had led the market to believe during the Class Period.
The plaintiff says that as a result of this information being withheld from the market, the price of Zendesk common stock was artificially inflated to more than $93 per share between February 6, 2019 and October 1, 2019, and that while Zendesk common stock was trading at these artificially inflated prices, certain of the Company's officers and/or directors cashed in, selling approximately 409,000 of their personally held Zendesk shares, reaping more than $32.7 million in proceeds.
Those who purchased shares of Zendesk, Inc. (NYSE: ZEN) have certain options and should contact the Shareholders Foundation.
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About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
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