Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $250,000 In Everbridge To Contact Him Directly To Discuss Their Options
New York, New York--(Newsfile Corp. - May 5, 2022) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Everbridge, Inc. ("Everbridge" or the "Company") (NASDAQ: EVBG) and reminds investors of the June 3, 2022 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 $250,000 investing in Everbridge stock or options between November 4, 2019 and February 24, 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: www.faruqilaw.com/EVBG.
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.
As detailed below, 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) failed to disclose that Everbridge was experiencing integration problems with respect to these acquisitions; (2) used the revenues from these acquisitions to mask increasingly stagnant organic growth; and (3) failed to disclose that the COVID pandemic was having a material impact on the size of the deals that Everbridge was able to obtain, with a negative effect on the Company's revenue growth.
The truth regarding Everbridge's failed growth strategy was partially revealed through a press release issued on December 9, 2021. On that date, the Company disclosed that Defendant David Meredith had unexpectedly resigned as Everbridge's CEO. The Company also provided 2022 revenue growth guidance of between 20-23%, well below the expected baseline of 30%. On this news, Everbridge's common stock price fell almost by half, a price decline of $52.37 per share, or 45.4 percent, to close at $63.00 per share on December 10, 2021.
Then, on February 24, 2022, the full truth was revealed. On that date, Everbridge announced its financial results for the fourth quarter and full year 2021, as well as its guidance for the first quarter and full year 2022. As to revenue, the Company guided only 20% growth in the first quarter of 2022 and a scant 15-17% growth for the full year, even lower than the disappointing guidance previously issued in December 2021.
Further, in the related earnings call that same day, the new interim co-CEO, Vernon Irvin, disclosed for the first time, despite prior representations to the contrary, that "these products and businesses" obtained from Everbridge's buying binge "have created incremental product line complexity that produce integration challenges and have complicated our go-to-market efforts." He also stated that Everbridge will pause engaging in any new M&A activity to focus on product integration, as well as significantly "simplify" and reduce its product offerings.
Defendant Patrick Brickley, the other interim co-CEO and CFO, stated that the focus on product integration and simplification would alone result in an approximate $17 million of revenue loss. Brickley also disclosed that the decline in deal sizes "has been exacerbated by lingering effects of COVID," and that it would result in another $15 million reduction in revenues. On all this news, Everbridge's common stock price fell another $15.68 per share, or 33.9 percent, to close at $30.61 per share on February 25, 2022.
As a result of Defendants' wrongful acts and omissions, and the precipitous decline in the market value of the Company's common stock, Plaintiff and other Class members have suffered significant losses and damages.
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 Everbridge's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/122998