LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”), a national investors rights law firm, announces that a class action lawsuit has been filed on behalf of investors that acquired Zendesk, Inc. (“Zendesk” or the “Company”) (NYSE: ZEN) securities between February 6, 2019 and October 1, 2019, inclusive (the “Class Period”). Zendesk investors have until December 23, 2019 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, at 310-201-9150, Toll-Free at 888-773-9224, or by email to firstname.lastname@example.org, or visit our website at www.glancylaw.com.
On July 30, 2019, Zendesk reported net loss of $54.5 million for second quarter 2019 and disclosed that sales growth in Europe, Middle East, and Africa and Asia-Pacific regions “didn’t quite live up to [the Company’s] own expectations, and lagg[ed] other regions.” As a result, Zendesk expected ongoing revenue growth of just 30%.
On this news, the Company’s stock price fell $9.56, or over 10%, to close at $83.56 per share on July 31, 2019, thereby injuring investors.
Then, on October 2, 2019, the Company disclosed that a data breach impacted customers who had signed up before November 2016.
On this news, Zendesk share price dropped $2.90, or nearly 4%, closing at $69.81 on October 2, 2019, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Zendesk's clients had been subject to data breaches dating back to 2016; (2) that Zendesk was experiencing slowing demand for its Software as a Service offerings, particularly in Germany, the United Kingdom, and Australia, due in large part to political uncertainty and China trade issues there; and (3) 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.
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If you purchased Zendesk securities during the Class Period, you may move the Court no later than December 23, 2019 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to email@example.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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