Philadelphia, Pennsylvania--(Newsfile Corp. - November 3, 2026) - Current Sprout Social, Inc. (SPT) shareholders who have continuously held shares since on or before September 22, 2021, are encouraged to contact Grabar Law Office regarding its investigation into potential breaches of fiduciary duty by certain officers and directors of the Company. You can seek corporate reforms, the return of money back to the company, and a court approved incentive award at no cost to you whatsoever. Please visit https://grabarlaw.com/the-latest/Sprout-Shareholder-Investigation/, contact Joshua Grabar at jgrabar@grabarlaw.com, or call 267-507-6085.

WHY? Grabar Law Office is investigating potential claims on behalf of Sprout Social, Inc. arising from allegations that certain officers and directors breached their fiduciary duties in connection with materially misleading statements concerning the Company's business operations, enterprise sales strategy, product capabilities, and growth prospects.

On October 6, 2026, the United States District Court for the Northern District of Illinois denied in its entirety a motion to dismiss a securities fraud class action against Sprout Social and certain current and former executives. Employees' Retirement System of the City of Baltimore v. Sprout Social, Inc., et al., Case No. 1:24-cv-03867 (N.D. Ill.).

In its 59-page opinion, the Court determined that the plaintiffs had adequately alleged materially false or misleading statements concerning:

1. Enterprise Sales Strategy: Whether Sprout's inbound sales model, originally designed for smaller businesses, was effective and sustainable in acquiring larger enterprise customers;
2. Product Capabilities: Whether Sprout's software possessed the functionality necessary to compete effectively for enterprise customers, including influencer marketing, social listening, advanced analytics, and other enterprise-grade capabilities;
3. Enterprise Sales Cycles: Whether Sprout's representations concerning relatively short enterprise sales cycles were misleading in light of allegations that enterprise sales required substantially longer periods; and
4. Salesforce Partnership: Whether the Company overstated the size and sustainability of its growth opportunity arising from its partnership with Salesforce.

The Court further concluded that the plaintiffs adequately pleaded a strong inference of scienter [statements made as knowingly false or with reckless disregard for the truth], including allegations concerning executive knowledge of operational deficiencies, confidential-witness accounts, internal sales information, and insider stock transactions.

The securities complaint alleges that partial disclosures on May 2, 2023, and August 3, 2023, and further disclosures on May 2, 2024, revealed previously concealed problems with Sprout's business. The Court determined that the plaintiffs adequately pleaded loss causation in connection with these disclosures, which were accompanied by alleged stock-price declines of 12.1%, 12.3%, and 40.1%, respectively.

WHAT CAN YOU DO NOW? Current Sprout Social (NASDAQ: SPT) shareholders who have continuously held shares since on or before September 22, 2021, may be eligible to participate in a shareholder derivative action seeking relief on behalf of the Company, including potential corporate governance reforms and recovery of damages or other appropriate relief for the Company at no cost to them whatsoever. For more information, please visit: https://grabarlaw.com/the-latest/Sprout-Shareholder-Investigation/, contact Joshua Grabar at jgrabar@grabarlaw.com or call 267-507-6085.

#SproutSocial #ShareholderRights #SPT $SPT

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Source: Grabar Law Office