SAN DIEGO & SAN MATEO, Calif.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP reminds investors that a purchaser of Zuora, Inc. (NYSE: ZUO) filed a class action complaint for alleged violations of the Securities Exchange Act of 1934 between April 12, 2018 and May 30, 2019. Zuora is a subscription management platform that utilizes cloud-based software.
If you suffered a loss as a result of Zuora's misconduct, click here.
Zuora, Inc. (ZUO) Accused of Misleading Investors
According to the complaint, in March 2019, Zuora announced its financial results for the full 2019 fiscal year and projected that its revenue for the 2020 fiscal year would fall in the range of $289 million to $293.5 million, which it reaffirmed in its April 2019 Form 10-K. However, these reports were materially false and misleading as they failed to disclose adverse facts regarding the company's integration of its flagship product, RevPro. To comply with the new accounting standard ASC 606, Zuora had to implement RevPro for new customers before the ASC 606 deadline, which depleted the company's available resources for integrating RevPro with its core business. This resulted in delays in RevPro's integration that materially affected Zuora's business. These adverse effects became evident in May 2019, when Zuora lowered its fiscal 2020 revenue guidance to a range of $268 million to $278 million from the previous range of $289 million to $293.5 million. On this news, the company's share price fell $5.91 per share, nearly 30%, to close at $13.99, and has yet to recover.
Zuora, Inc. (ZUO) Shareholders Have Legal Options
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