Archived Investigations

Kornit Digital Ltd. (NasdaqGS: KRNT)

Company Name:Kornit Digital Ltd.
Stock Symbol:NasdaqGS: KRNT
Court:District of New Jersey
Class Period Start:02/17/2021
Class Period End (inclusive):07/05/2022
Filing Deadline:The deadline has passed.
February 16, 2023

Kahn Swick & Foti, LLC (“KSF”) and KSF partner, former Attorney General of Louisiana, Charles C. Foti, Jr., remind investors that they have until April 17, 2023 to file lead plaintiff applications in a securities class action lawsuit against Kornit Digital Ltd. (the “Company”) (NasdaqGS: KRNT).

Kornit Digital and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws. 

On May 11, 2022, the Company disclosed a net loss of $5.2 million for 1Q 2022 (compared to a profit of $5.1 million in the prior year period) and revenue guidance for 2Q 2022 significantly below analysts’ expectations due to a slowdown in orders.  The Company also admitted that, for at least the previous two quarters, it knew that one of its major customers had acquired services from a competitor. On this news, shares of Kornit fell by $18.78 per share, or 33%.

Then, on July 5, 2022, the Company disclosed expected revenue for 2Q 2022 in the range of $56.4 million to $59.4 million, well below the previous revenue guidance of between $85 million and $95 million, which it attributed to “a significantly slower pace of direct-to-garment (DTG) systems orders in the second quarter as compared to our prior expectations.”  On this news, shares of Kornit declined an additional $8.10 per share, or 25.7%.

The first-filed case is Genesee County Employees’ Retirement System v. Kornit Digital Ltd., No. 23-cv-888. A subsequent case, Cleveland Bakers And Teamsters Pension Fund v. Kornit Digital Ltd., No. 23-cv-971, was filed.

Click here to read the first filed complaint.

Click here to read the subsequent complaint.