NEW YORK, April 17, 2023 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of Allbirds, Inc. (NASDAQ: BIRD), and Nutanix, Inc. (NASDAQ: NTNX). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
Allbirds, Inc. (NASDAQ: BIRD)
Class Period: In connection with the Company’s November 2021 IPO; November 4, 2021 - March 9, 2023
Lead Plaintiff Deadline: June 12, 2023
In November 2021, Allbirds conducted its IPO, selling approximately 16,850,799 shares of Class A common stock at $15.00 per share.
On March 9, 2023, after the market closed, the Company issued a press release announcing a fourth quarter 2022 net loss of $24.9 million and a full year 2022 net loss of $101.4 million. The Company also announced a full year 2022 adjusted EBITDA loss of $60.4 million, which was higher than the guidance target that estimated an adjusted EBITDA loss of $42.5 million to $37.5 million. Allbirds also disclosed in the press release that, in response to these negative results, it created a “strategic transformation plan to reignite growth, improve costs and capital efficiency, and drive profitability.” The plan purportedly focused on four areas: reigniting product and brand, optimizing U.S. stores and slowing the pace of openings, evaluating transition of international go-to-market strategy, and improving cost savings and capital efficiency.
Also on March 9, 2023, after the market closed, Allbirds announced that its Chief Financial Officer was stepping down.
The same day, March 9, 2023, the Company held a conference call with analysts to discuss its fourth quarter 2022 results. On the call, Defendant Joseph Zwillinger, the Company’s Co-CEO, explained that Allbirds’ poor results were driven in part by the fact that Allbirds “overemphasized products that extended beyond our core DNA.” As a result, he explained, “some products and colors have had narrower appeal than expected” and “[b]ecause we were spending significant time and resources on these new products that did not resonate well, we underinvested in our core consumers’ favorite products.”
On this news, the Company’s stock price fell $1.11, or 47%, to close at $1.25 per share on March 10, 2023, thereby injuring investors.
By the commencement of this action, the Company’s stock price had closed as low as $1.06 per share, a 92.9% decline from the Company’s $15.00 per share IPO price.
The complaint filed in this class action alleges that in the Registration Statement and throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Allbirds was overemphasizing products that extended beyond the Company’s core offerings; (2) that the Company’s non-core products had a narrower appeal and were not resonating with customers as well as the Company’s core products; (3) that Allbirds was underinvesting in its core consumers’ favorite products to push the Company’s newer products with narrower appeal; (4) that underinvesting in Allbirds’ core products was negatively impacting the Company’s sales; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
For more information on the Allbirds class action go to: https://bespc.com/cases/BIRD
Nutanix, Inc. (NASDAQ: NTNX)
Class Period: September 21, 2021 - March 6, 2023
Lead Plaintiff Deadline: June 13, 2023
According to the Complaint, the Company made false and misleading statements to the market. Nutanix failed to maintain appropriate internal controls over licensed software and expense management. The Company improperly used evaluation software for active business purposes over the course of multiple years. The Company would incur significant expenses in rightfully paying for the software it used to run its business. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Nutanix, investors suffered damages.
For more information on the Nutanix class action go to: https://bespc.com/cases/NTNX
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
