NEW YORK--(BUSINESS WIRE)--Rosen Law Firm, a global investor rights law firm, continues its investigation of potential securities claims on behalf of shareholders of Kornit Digital Ltd. (NASDAQ: KRNT) resulting from allegations that Kornit may have issued materially misleading business information to the investing public.
On May 7, 2019, Spruce Point Capital Management (“Spruce Point”) published a report regarding Kornit, entitled “Teed Up And Printing Rebates”. The Spruce Point report alleged, among other things, that Kornit was “not adequately disclosing” the terms of Amazon price rebates; that there was “a discrepancy between reported Amazon revenues in Kornit’s filings”; and Kornit had engaged in “aggressive tactic[s]” with respect to reporting the cost of warrants granted to Amazon, “which the SEC questioned, and made [Kornit] restate results.” On this news, Kornit’s stock price fell $2.63 per share, or 9.35%, to close at $25.51 per share on May 7, 2019.
Then, on August 6, 2019, after the market closed, Kornit announced its financial results for the second quarter of 2019, disclosing a significant decline in gross margin, “primarily driven by impact of warrants, product mix and new product introduction.” On this news, Kornit’s stock price fell $2.58 per share, or over 8.6%, to close at $27.29 per share on August 7, 2019.
Rosen Law Firm is preparing a class action lawsuit to recover losses suffered by Kornit investors. If you purchased shares of Kornit please visit the firm’s website at http://www.rosenlegal.com/cases-register-1571.html to join the class action. You may also contact Phillip Kim of Rosen Law Firm toll free at 866-767-3653 or via email at firstname.lastname@example.org or email@example.com.
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Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 3 each year since 2013. Rosen Law Firm has secured hundreds of millions of dollars for investors.
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