Shareholder Alert: Robbins LLP Informs Investors of Class Action Against Kornit Digital Ltd. (KRNT) | News
SAN DIEGO –(BUSINESS WIRE-Feb 16, 2023)
The Class: Robbins LLP informing investors that a shareholder brought a class action for all those or entities that bought or otherwise acquired Kornit Digital Ltd. NASDAQ:KRNT ordinary shares, for violating the Securities Exchange Act. Kornit develops and produces industrial digital printing technologies that are used in the apparel, textile and garment industries.
How do you react now?Kornit may allow shareholders who are similarly situated to join the class action. To be eligible to serve as the lead plaintiff of the class, shareholder must make their paperwork by April 17, 2023. Lead plaintiffs are representatives who act on behalf of the class members and direct litigation. To be entitled to a recovery, you don’t have to take part in the case. Click here for more details.
Representation is provided on a contingent fee basis. All expenses and fees are paid by shareholders.
How does this case relate to: Kornit Digital Ltd.
According to the complaint, during the class period, defendants touted the purported competitive advantages provided by its technology and assured investors that it faced virtually no meaningful competition in the “direct-to-garment” printing market. Kornit also claimed that its digital printing products and consumables were in high demand. They added that they could provide services to customers for maintaining and managing their digital printers and managing customer workflow.
In truth, Kornit and its senior executives knew or, at a minimum, recklessly disregarded, that the Company’s digital printing business was beset by significant quality control problems and deficient customer service. Kornit fell prey to competitors, and it lacked competitive advantages that it promised investors. Those problems and deficiencies caused Kornit to lose market share to competitors, which led to a decline in the Company’s revenues, as Kornit’s dissatisfied customers sought out alternative options for their digital printing needs. Kornit did not disclose the fact that it had been warning of increased competition and quality risks.
Kornit announced its financial results for 2022’s first quarter. It reported a loss of $5.2million, while it earned $5.1 million in profit for 2021. Kornit informed investors that the company’s second quarter in 2022 will see lower revenue than anticipated and less profitability. These disclosures and others caused Kornit’s ordinary shares to fall by $18.78, or 33% to $37.63 on May 11, 2022.
On July 5, 2022 Kornit released preliminary financial results of the second quarter 2022. According to the Company, it expected a substantial revenue deficit for this quarter. Specifically, Kornit expected revenue for the second quarter to be in the range of $56.4 million to $59.4 million, representing a reduction of more than 35% at the midpoint of Kornit’s previous revenue guidance of between $85 million and $95 million that the Company provided less than two months earlier. The price of Kornit’s ordinary shares fell by another $8.10 or 25.7% to $23.46 per Share on July 6, 2022.
For more information, please contact us:
Aaron Dumas
(800) 350-6003
For information about shareholders, please use this form
Robbins LLP: Since 2002 Robbins LLP has been a recognized leader in shareholder litigation. The attorneys and staff at Robbins LLP are dedicated to helping shareholders recuperate losses, strengthen corporate governance structures and hold CEOs accountable for wrongdoing. Register for Stock Watch to be informed if Kornit Digital Ltd. is settled or receive alerts whenever corporate executives are involved in wrongdoing.
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CONTACT: Aaron Dumas
Robbins LLP
5060 Shoreham Pl. Ste. 300
San Diego, CA 92122
(800) 350-6003
www.robbinsllp.com
KEYWORD CALIFORNIA UNITED NATIONS NORTH AMERICA
INDUSTRY KEYWORD – TECHNOLOGY CLASS ACTION LEWSUIT PROFESSIONAL SERVICE 5G
SOURCE: Robbins LLP
Copyright Business Wire 2023
PUB: 02/16/2023 07.02 PM/DISC 02.16/2023 07.01 PM
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