Faruqi & Faruqi, LLP investigates claims

NEW YORK, May 17, 2024 (GLOBE NEWSWIRE) — Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating and recalls potential claims against Sprout Social, Inc. (“Sprout Social” or the “Company”) (NASDAQ: SPT). investors in it Deadline: July 12, 2024 to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company.

Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson encourages investors who have suffered losses of more than $100,000 at Sprout Social to contact him directly to discuss their options

If you suffered losses of more than $100,000 while investing in Sprout Social stocks or options between November 2, 2023 and May 2, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi Partners Josh Wilson directly at 877-247-4292 or 212-983-9330 (ext. 1310). For more information you can also click here: www.faruqilaw.com/SPT.

Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The company has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.

As set forth below, the complaint alleges that the Company and its officers violated federal securities laws by making false and/or misleading statements and/or by failing to disclose: (1) The Company’s sales and earnings growth was not an indication of the company’s growth it was transitioning to a corporate sales cycle; (2) that the Company faced integration challenges with the acquisition of Tagger; (3) As a result, the company “created itself revenue headwinds”; (4) As a result, the Company would revise its fiscal year 2024 revenue guidance; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On May 2, 2024, after the market closed, Sprout Social reported the Company’s operating results for the first fiscal quarter of 2024 and disclosed that the Company had missed its revenue guidance for the quarter. The company also revised down its full-year 2024 revenue forecast by $20 million. The Company’s Chief Financial Officer (“CFO”), Joe Del Preto (“Del Preto”), stated that the Company “underestimated the extent of business seasonality” and that the Company also “created itself sales execution headwinds.” During the same day’s earnings conference call, the Company’s current and future Chief Executive Officer (“CEO”), Ryan Barretto (“Barretto”), announced that the Company “made several key strategic decisions early in the first quarter “The company “considered (it) could () operate without interruption, but they set us back overall.” Barretto stated that these decisions “were made in the fourth quarter and the implementation occurred in the first quarter.” Barretto further revealed that the company’s business shift has “significantly changed” and “impacted revenue recognition and planning,” which is now “strongly embedded in traditional corporate buying cycles.” Justyn Howard (“Howard”), the company’s current CEO, also revealed that the company had to spend “energy and calories” on “tactical decisions” in the first quarter, including “spending time with the tagger activation team.” . Barretto further explained, “From a sales team perspective and the maturity of the sales team, we did a lot of things in the first quarter around customer engagement or making sure we’re on top of everything.” Elements of influencers and our tagger platform. “

On this news, Sprout Social’s stock price fell $19.33, or 40.1%, to close at $28.82 per share on May 3, 2024, due to unusually high trading volume.

The court-appointed lead plaintiff is the investor with the greatest financial interest in the relief sought by the class, who is appropriate and typical of the class, and who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may request the Court to serve as lead plaintiff through counsel of their choice, or may elect to do nothing and remain an absent class member. Your ability to participate in any recovery will not be affected by the decision to serve as lead plaintiff or not.

Faruqi & Faruqi, LLP also encourages anyone with information about Sprout Social’s conduct to contact the company, including whistleblowers, former employees, shareholders and others.

To find out more about the Sprout Social Class action lawsuit, go for it www.faruqilaw.com/SPT or Call Faruqi & Faruqi Partners Josh Wilson directly at 877-247-4292 or 212-983-9330 (ext. 1310).

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