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NEW YORK, April 1, 2023 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Cognyte Software, Ltd. ("Cognyte" or the "Company") (NASDAQ: cgnt ) and reminds investors of the May 1, 2023 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you suffered losses exceeding $100,000 investing in Cognyte stock or options between February 2, 2021 and June 28, 2022 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330
(Ext. 1310) . You may also click here for additional information: .
There is no cost or obligation to you.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
The Cognyte class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that Cognyte created, distributed, and provided reconnaissance tools and services that violated community standards and terms of service of communication network sources and technologies, like Facebook, exposing Cognyte to significant financial and reputational risk.
On December 16, 2021, Meta Platforms Inc., the parent company of Facebook and Instagram, issued a "Threat Report" which revealed that Cognyte "sells access to its platform which enables managing fake accounts across social media platforms including Facebook, Instagram, YouTube, and VKontakte (VK), and other websites to social-engineer people and collect data." This conduct "violated multiple Community Standards and Terms of Service," and "[g]iven the severity of their violations," Meta disabled Cognyte's ability to use its platforms, among other things. On this news, Cognyte's common stock price declined more than 5%.
Then, on April 5, 2022, Cognyte revealed that it was forced to modify its solutions in response to the Threat Report. Cognyte also announced disappointing financial results and guidance. On this news, Cognyte's common stock price declined more than 31%.
Finally, on June 28, 2022, Cognyte released its first quarter 2022 financial results which badly missed analyst estimates across the board. Analysts immediately downgraded Cognyte's rating and reduced price targets. On this news, Cognyte's common stock price declined more than 28%, further damaging investors.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Cognyte's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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