Archived Investigations
Kornit Digital Ltd. (NasdaqGS: KRNT)
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.