Sprout Social(US:SPT) Prnewswire·2024-07-10 14:45Core Viewpoint - A class action lawsuit has been filed against Sprout Social, Inc. for alleged violations of securities laws, claiming that the company made false and misleading statements regarding its sales growth and revenue guidance [1][6]. Group 1: Lawsuit Details - The lawsuit is based on violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 [1]. - The class period for the lawsuit is from November 2, 2023, to May 2, 2024 [5]. - The class has not yet been certified, meaning that affected shareholders are not currently represented by an attorney [3]. Group 2: Allegations Against the Company - The complaint alleges that Sprout's sales growth was not indicative of future performance as the company transitioned to an enterprise sales cycle [6]. - It is claimed that the company failed to effectively integrate its Tagger acquisition and faced self-induced sales challenges [6]. - The company is accused of needing to revise its fiscal year 2024 revenue guidance, which led to misleading public statements [6].