SAN DIEGO & SAN FRANCISCO--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Zendesk, Inc. (NYSE: ZEN) filed a class action complaint for alleged violations of the Securities Exchange Act of 1934 between February 6, 2019 and October 1, 2019. Zendesk is a software development company that provides Software as a Service ("SaaS") products for organizations.
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Zendesk, Inc. (ZEN) Fails to Disclose Data Breach
According to the complaint, throughout the relevant period, Zendesk's financial results boasted large year-over-year revenue increases and assured investors the Company "[was] seeing strong global demand and revenue growth in every region." However, Zendesk's financial statements were misleading and had failed to disclose that its clients had been subject to data breaches since 2016 and that the Company was experiencing slowing demand for its SaaS offerings. Then, on July 30, 2019, Zendesk issued a press release that revealed an increase of $54.5 million in net losses and a revenue growth rate that had fallen short of previously reported expectations. On this news, Zendesk's share price fell $10 per share to close at $83.56 per share. On October 2, 2019, Zendesk finally revealed that the Company had experienced a data breach in 2016 and was working to determine what data was exposed. On this news, Zendesk's share price fell another $2.90 per share to close at $69.81. The stock has yet to recover.
Zendesk, Inc. (ZEN) Shareholders Have Legal Options
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