Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $100,000 In Zendesk, Inc. To Contact The Firm
Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Zendesk, Inc. (“Zendesk” or the “Company”) (NYSE:ZEN) of the December 23, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Zendesk stock or options between February 6, 2019 and October 1, 2019 and would like to discuss your legal rights, please fill out the form below. There is no cost or obligation to you. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
The lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of all those who purchased Zendesk common stock between February 6, 2019 and October 1, 2019 (the “Class Period”). The case, Reidinger v. Zendesk, Inc., No. 19-cv-06968 was filed on October 24, 2019 and has been assigned to Judge Charles R. Breyer.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Zendesk’s clients had been subject to data breaches dating back to 2016; (2) Zendesk was experiencing slowing demand for its SaaS offerings, particularly in Germany, the U.K. and Australia, due in large part to political uncertainty and China trade issues there; (3) or the forgoing reasons, Zendesk’s business metrics and financial prospects were not as strong as represented during the Class Period; and (4) as a result, Zendesk’s public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
On July 30, 2019, Zendesk issued a press release and conducted a conference call to announce its second quarter 2019 (“2Q19”) financial results for the period ended June 30, 2019. Zendesk reported net losses that had grown to $54.5 million, or $0.50 per share, which was significantly larger than the $34.4 million, or $0.33 per share, reported in 2Q18, despite the fact that 2Q19 revenues had increased from $141.9 million in 2Q18 to $194.6 million in 2Q19. The Company also reported revenue growth of 37%, which was below the 38%-41% range the Company had reported over the prior eight quarters.
In addition to the disappointing financial results, Zendesk disclosed that its sales growth in the Europe, Middle East, and Africa and Asia-Pacific regions “didn’t quite live up to [defendants’] own expectations, and lagg[ed] other regions.”
On this news, the Company's stock price fell from $93.12 per share on July 30, 2019 to $83.56 per share on July 31, 2019: a $9.56 or 10.27% drop.
On October 2, 2019, Zendesk for the first time publicly disclosed the data breach, stating then that the data breach only affected customers who had signed up prior to November 1, 2016.
On news of the data breach, the price of Zendesk common stock fell from $72.71 per share on October 1, 2019 to $69.81 per share on October 2, 2019: a $2.90 or 3.99% drop.
Zendesk, Inc. (ZEN)
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Filed on 11/04/2019
Lead Plaintiff Deadline 12/23/2019
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Richard W. Gonnello firstname.lastname@example.org Phone (212) 983-9330 Fax (212) 983-9331