Securities class action litigation has been filed on behalf of investors in Splunk Inc. (“Splunk” or the ”Company“) (Nasdaq: SPLK). If you purchased or otherwise acquired the common stock of Splunk between October 21, 2020 and December 2, 2020, inclusive (the “Class Period”), you may move the court for appointment as lead plaintiff by no later than February 2, 2021.
You may retain Lieff Cabraser Heimann & Bernstein, LLP, or other attorneys, as your counsel in the action. Recognized by the National Law Journal as one of the nation’s top plaintiffs’ law firms, Lieff Cabraser is committed to safeguarding the rights of investors and upholding the integrity of the market. We have significant experience and a successful track record of representing institutional and individual investors in securities and financial fraud litigation.
Background on the Splunk Securities Class Litigation
Splunk, incorporated in Delaware and headquartered in San Francisco, California, is a software company specializing in web-based products for searching, monitoring, and analyzing machine-generated data at an organizational level.
The action alleges that, during the Class Period, defendants misrepresented and/or failed to disclose that: (1) Splunk was failing to close deals with most of its biggest customers in the fiscal third quarter 2021; (2) Splunk was not achieving the financial targets it had previously announced; and (3) as a result, defendants’ public statements were at all relevant times materially false and misleading.
On December 2, 2020, after markets closed, Splunk announced disappointing results for the fiscal third quarter 2021, including a decrease of approximately 11% in total revenues, missing analyst estimates by almost $60 million. On the subsequent earnings call, Company executives disclosed for the first time that Splunk had failed to close most of its largest deals during the quarter. On this news, the price of Spunk stock dropped $47.88 per share, or 23.25%, from its closing price of $205.91 on December 2, 2020, to close at $158.03 per share on December 3, 2020, on extremely heavy trading volume.