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SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Everbridge, Inc. – EVBGApr 11th, 2022 20:45 EST
NEW YORK, April 11, 2022 /PRNewswire/ — Pomerantz LLP is investigating claims on behalf of investors of Everbridge, Inc. (“Everbridge” or the “Company”) (NASDAQ: EVBG). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether Everbridge and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On December 9, 2021, the Company disclosed that its CEO had unexpectedly resigned. The Company also provided 2022 revenue growth guidance of between 20-23%, well below the expected baseline of 30%. On this news, Everbridge’s stock price fell $52.37 per share, or 45.4%, to close at $63.00 per share on December 10, 2021. Then, on February 24, 2022, Everbridge announced its financial results for the fourth quarter and full year 2021, as well as its guidance for the first quarter and full year 2022. As to revenue, the Company guided only 20% growth in the first quarter of 2022 and a scant 15-17% growth for the full year, even lower than the disappointing guidance previously issued in December 2021. Further, in the related earnings call that same day, the new interim co-CEO, Vernon Irvin, disclosed for the first time, despite prior representations to the contrary, that “these products and businesses” obtained from Everbridge’s buying binge “have created incremental product line complexity that produce integration challenges and have complicated our go-to-market efforts.” Irvin also stated that Everbridge will pause engaging in any new M&A activity to focus on product integration, as well as significantly “simplify” and reduce its product offerings. Finally, Patrick Brickley, Everbridge’s other interim co-CEO and CFO, stated that the focus on product integration and simplification would alone result in an approximate $17 million of revenue loss. Brickley also disclosed that the decline in deal sizes “has been exacerbated by lingering effects of COVID,” and that it would result in another $15 million reduction in revenues.
On all this news, Everbridge’s common stock price fell another $15.68 per share, or 33.9%, to close at $30.61 per share on February 25, 2022.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT: Robert S. Willoughby Pomerantz LLP [email protected]
SOURCE Pomerantz LLP