Did you lose any money from investments in Kornit Digital Visit Kornit Digital Ltd. Contact us for a Shareholder Class Action Lawsuit Peter Allocco Call (212) 951-2030 or [email protected] to discuss your rights.
NEW YORK, April 11, 2023 /PRNewswire/ – Bernstein Liebhard LLP is a nationally acclaimed investor right law firm reminding investors about the deadline for filing a lead plaintiff motion to a securities class action lawsuit on behalf of investors who bought or acquired ordinary shares of Kornit Digital Ltd. (“Kornit”) (NASDAQ: KRNT between February 17, 2021 And July 5, 2022, inclusive (“the “Class Period”) The lawsuit was filed in The United States District Court for the District of New Jersey he alleges violations of Securities Exchange Act of 1934
Kornit is a manufacturer of industrial digital printing technology for textile, garment, and apparel industries. The digital inkjet printers of the Company allow end-users print directly-to-garment (“DTG”) as well as direct-tofabric (“DTF”) DTG printing is where designs and images can be printed directly onto textiles like clothing and apparel. In DTF printing, large rolls of fabric pass through wide inkjet printers that print images and designs directly on to swaths of fabric that are then cut and sewn into a product, and can be used in the fashion and home décor industries. Kornit also sells textile inks, and other consumables to use with its digital printers. Kornit provides technical support and customer service for its printers through customer support agreements.
Kornit repeatedly spoke out about the alleged competitive advantages it had and assured investors that they faced little competition in the DTG printing industry. Kornit claimed that its digital printing systems, consumables, such as inks for textiles, were in strong demand. It also offered services to customers to maintain and control its digital printers as well as to manage customer workflow. Kornit also assured investors that there was strong demand for its products and services, which would allow it to retain its existing customers and attract new ones. This would reduce the risk associated with a large portion of the Company’s revenues being concentrated in a few large customers.
Plaintiff claims that similar statements were made during the Class Period. Kornit and its senior executives were aware, or at least recklessly ignored, the fact that the Company’s digital printer business was plagued in quality control and customer service issues. These problems and deficiencies led Kornit to lose market share to its competitors. This resulted in a decline in revenue for the Company as customers moved to other digital printing companies. Because of these false representations, Kornit ordinary shares were traded at artificially elevated prices throughout the Class Period.
The truth was finally revealed to investors March 28, 2022Fanatics and Delta Apparel – two of Kornit’s most important customers – revealed that they had worked for months with one Kornit’s principal competitors to develop a digital printing system that directly competes against the products and services Kornit provided. Delta Apparel said that it had installed the new technology in four existing digital printing facilities and was planning to expand. Fanatics and Delta Apparel both used the new technology in a rival fashion. It was a reflection of widespread dissatisfaction among Kornit’s most important customers about the Company’s quality of products and customer service.
On May 11, 2022Kornit reported an unexpected net loss of $2.2 million despite reporting revenues exceeding expectations. $5.2 Million For the first quarter in 2022, it was a profit of $5.1 million In the previous year period. Revenue guidance was also issued by the Company for 2022, which was significantly below analysts’ expectations. Kornit said that the Company’s disappointing guidance was due to a slower pace of orders from customers in the electronic commerce segment. The Company also admitted that it knew for at least two quarters that Delta Apparel had purchased digital printing systems from Kornit competitors.
The price of Kornit’s ordinary shares dropped on this news $18.78 To close at, per share or 33.3% $37.63 per share on May 11, 2022.
Then, on July 5, 2022Kornit revealed that it would report significant revenue loss for the second half of 2022, shortly after the market had closed. Kornit anticipated that the revenue for its second quarter would fall between $1.01 and $1.02. $56.4 million To $59.4 millionsThis is far less than the previous revenue guidance of between $85 Million And $95 Million The Company had not provided information for two months prior to the incident. May 2022. Kornit said that the revenue missed was due to “a significantly lower pace of direct to-garment (DTG), systems orders in quarter two than our prior expectations.”
The price of Kornit’s ordinary shares dropped on this news $8.10 Per share, or 25.7% to close at $23.46 per share on July 6, 2022.
You must apply to the Court by no later than April 30, if you want to be named as lead plaintiff April 17, 2023. A lead plaintiff represents a class member and acts on behalf of the other class members when directing litigation. However, your ability to share in any recovery does not require you to serve as a lead plaintiff. If you decide to not take action, you can remain an absent class member.
If you are interested in Kornit ordinary shares purchased or acquired, and/or you would like to discuss legal rights and options Kornit Digital Ltd. Contact Kornit Digital Ltd. Peter Allocco at (212) 951-2030 or [email protected].
Bernstein Liebhard LLP has seen over a million dollars in recovery since 1993. $3.5 Billion For its clients. The Firm represents individual investors and has also been retained by the nation’s largest pension funds to monitor their assets, and to pursue litigation for them. The Firm’s success in defending hundreds of lawsuits and class actions has earned it a spot on The National Law Journal’s “Plaintiffs’ Hot List” thirteen consecutive times, and a listing in The Legal 500 for ten years.
ATTORNEY ADVERTISING. © 2022 Bernstein Liebhard LLP. Bernstein Liebhard LLP (10 East 40th Street) is the law firm responsible for this ad. New York, New York 10016, (212) 779-1414. Precedent results are not indicative of a similar outcome in future matters.
Contact Information
Peter Allocco
Bernstein Liebhard LLP
https://www.bernlieb.com
(212) 951-2030
[email protected]
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