SPROUT SOCIAL STOCKHOLDER ALERT: Kaskela Law LLC Announces Investigation of Sprout Social, Inc. (SPT) and Encourages Long-Term SPT Investors to Contact the Firm

Philadelphia, Pennsylvania--(Newsfile Corp. - March 17, 2025) - Kaskela Law LLC announces that it has commenced an investigation into Sprout Social, Inc. (NASDAQ: SPT) on behalf of the company's long-term shareholders.

Click here for additional information: https://kaskelalaw.com/case/sprout-social/

Recently a securities fraud complaint was filed against Sprout Social on behalf of certain investors who purchased shares of the company's stock between September 22, 2021 and May 2, 2024. According to the complaint, during that time period, Sprout Social and several of the company's executive officers falsely assured investors that Sprout Social's "upmarket" transition was on track and entirely successful, repeatedly touting that the company's social media management platform provided all the features and capabilities needed to serve large, complex corporate customers.

However, and as further detailed in the complaint, on May 2, 2024, the defendants made a series of stunning disclosures that completely contradicted what they had been telling investors for years. Moreover, defendants "made crystal clear" that Sprout Social's poor performance and outlook were in no way, shape or form the product of external factors. To the contrary, defendants explicitly admitted that the company's debacle was entirely "self-induced," with Sprout Social's newly appointed CEO tellingly acknowledging: "I own this." Following these disclosures, shares of Sprout Social's stock fell $19.33 per share, or 40% in value, to close at $28.82 per share on May 3, 2024, on unusually heavy trading volume.

The investigation seeks to determine whether the members of Sprout Social's board of directors violated the securities laws and/or breached their fiduciary duties in connection with the above alleged misconduct.

Sprout Social shareholders who purchased or acquired their shares prior to January 1, 2023 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 - 0750 for additional information about this investigation and their legal rights and options.

Alternatively, investors may submit their information to the firm by clicking on the following link (or if necessary, by copying and pasting the link into your browser):

https://kaskelalaw.com/case/sprout-social/

Kaskela Law LLC exclusively represents investors in securities fraud, corporate governance, and merger & acquisition litigation on a contingent basis. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.

This notice may constitute attorney advertising in certain jurisdictions.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/244801