BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased ON24, Inc. (“ON24” or the “Company”) (NYSE: ONTF) securities pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s February 2021 initial public offering (“IPO” or the “Offering”). ON24 investors have until January 3, 2022 to file a lead plaintiff motion.
Investors suffering losses on their ON24 investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
In February 2021, ON24 conducted its initial public offering (“IPO”), selling 8,560,930 shares of its common stock at a price of $50 per share.
Then, on August 10, 2021, after the markets closed, ON24 announced its second quarter 2021 financial results and provided guidance for the remainder of the year. Specifically, ON24 expected revenue of no more than $48.5 million in the third quarter and $204.5 million for fiscal year 2021, missing analyst consensus estimates by $2.7 million and $4.5 million, respectively.
On this news, ON24’s stock declined $10.00, or nearly 31%, to close at $22.31 per share on August 11, 2021. Since the IPO, ON24’s stock has traded as low as $18.66 per share, 63% below the IPO price of $50 per share.
The complaint filed in this class action alleges that the Registration Statement was materially misleading because it failed to disclose, among other things, that the surge in COVID-19 customers observed in the lead up to the IPO consisted of a significant number that did not fit ON24's traditional customer profile, and, as a result, were significantly less likely to renew their contracts.
If you purchased ON24 securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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