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Newsfile 17-Mar-2023 5:51 PM
New York, New York--(Newsfile Corp. - March 17, 2023) - The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of those who acquired Kornit Digital Ltd. ("Kornit" or the "Company") (NASDAQ:KRNT) securities during the period from February 17, 2021 through July 5, 2022 (the "Class Period"). Investors have until April 17, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Kornit Digital Ltd manufactures digital inkjet printers, which are used by the textile industry to print directly onto cloth.
On May 11, 2022, Kornit reported its financial results for the first quarter of 2022 and held a conference call with analysts and investors to discuss those results. Kornit reported a net loss of $5.2 million, compared to a profit of $5.1 million for the first quarter of 2021. The Company also told investors to expect Kornit to generate between $85 million and $95 million of revenues in the second quarter of 2022, which, at the midpoint, was $13 million below analysts' expectations. Moreover, Defendant Ronen Samuel, Kornit's CEO, admitted that, for at least the previous two quarters, Kornit knew that Delta Apparel, one of Kornit's largest customers, had decided to acquire digital printing systems from one of Kornit's competitors. On this news, the price of Kornit shares declined by $18.78 per share, or approximately 33.29%, from $56.41 per share to close at $37.63 on May 11, 2022.
On July 5, 2022, Kornit announced its preliminary financial results for the second quarter of 2022. The Company disclosed that it would report a significant revenue shortfall in the quarter. Specifically, Kornit expected revenue for the second quarter to be reduced by more than 35% at the midpoint of Kornit's previous revenue guidance, which the Company had provided less than two months earlier, in May 2022. On this news, the price of Kornit shares declined by $8.10 per share, or approximately 25.67%, from $31.56 per share to close at $23.46 on July 6, 2022.
The lawsuit alleges that, throughout the Class Period, Defendants issued materially false and/or misleading statements and/or failed to disclose that: (1) the Company's digital printing business was plagued by severe quality control problems and customer service deficiencies; (2) these problems and deficiencies caused Kornit to cede market share to competitors; and (3) this, in turn, led to a decrease in the Company's revenue as customers went elsewhere for their digital printing needs.
If you purchased or otherwise acquired Kornit securities, have information, or would like to learn more about this lawsuit and how it might affect your rights, please contact Thomas W. Elrod of Kirby McInerney LLP by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs' law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP's website: http://www.kmllp.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Kirby McInerney LLP
Thomas W. Elrod, Esq.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/158964