Did you lose money in investments with Kornit Digital Please visit Kornit Digital Ltd. Lawsuit for Shareholder Class Action Peter Allocco, (212) 951-2030 or [email protected] To discuss your rights.
NEW YORK NY / ACCESSWIRE / February 21, 20, 2323 / Bernstein Liebhard LLP is a nationally acclaimed investor right law firm. Investors are reminded of 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 August 5, 2022, inclusive (the “Class Period”) The lawsuit was filed in the United States District Court for the District of New Jersey.
Kornit is a manufacturer of industrial digital printing technologies that are used in the textile, garment, and apparel industries. End-users can print direct-to fabric (“DTF”) or direct-to garment (“DTG”) using the Company’s digital printers. 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 manufactures and sells textile dyes and other supplies for its digital printers. Kornit offers customer support contracts that provide technical support and equipment services to its printers.
Kornit repeatedly emphasized the purported competitive benefits of its technology throughout the Class Period and assured investors that there was virtually no competition in DTG printing. 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 asserts that the statements and others made throughout this Class Period were false. Kornit’s senior executives knew or, at the very least, disregard that the Company’s digital printing business was plagued with severe quality control issues and customer service shortcomings. These issues and deficiencies caused Kornit’s market share to be ceded to competitors. This in turn led to a decrease of revenue for the Company, as customers went to other places to print their digital printing requirements. These misrepresentations led to Kornit’s ordinary shares trading at artificially high prices during the Class Period.
Investors learned the truth about Kornit on March 28, 2022 when Fanatics (Delta Apparel) and Fanatics, two of Kornit’s most important customers, announced that for months they had worked with one Kornit’s principal competitors to develop a digital printing technology directly competing with Kornit’s offerings. 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 used this competing technology to reflect the dissatisfaction expressed by Kornit’s major clients with its product quality and customer service. This meant that Kornit would lose revenue from two of the most important customers.
Kornit reported a net profit of $5.1 million for the year prior to reporting revenue that was higher than expected. The Company issued revenue guidance for 2022, which was considerably 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.
This news caused the Kornit ordinary share price to fall $18.78 per shares, or 33.3%, and close at $37.63 on May 11, 2022.
Kornit announced on July 5, 2022 that it would report significant revenue loss for the second quarter in 2022. Kornit expects revenue to range from $56.4 million-$59.4 million for the second period. This is significantly lower than the revenue guidance that Kornit provided in May 2022, which was between $85 and $95 millions. Kornit said that the significant revenue loss was due to “a significantly slower pace in direct-to-garment orders (DTG) system orders in the second quarter compared to our previous expectations.”
The price of Kornit ordinary stock shares dropped $8.10, or 25.7% to close at $23.46 per sa on July 6, 2022.
You must make a motion to the Court to become a lead plaintiff if you wish for your case to be heard by the Court. April 17, 2023. A lead plaintiff represents a class member and acts on behalf of the other class members when directing litigation. You don’t have to be a lead plaintiff in order to participate in any recovery. You can choose not to take any action and you could remain an absent member of the class.
If you are interested in Kornit shares were purchased or acquired. Kornit Digital Ltd. Contact Kornit Digital Ltd. Peter Allocco Contact us at (212-951-2003) [email protected].
Bernstein Liebhard LLP has recouped over $3.5 billion for clients since 1993. 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 upon lawsuits and class action cases has resulted in it being named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and The Legal 500 for ten consecutive year.
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Contact Information:
Peter Allocco
Bernstein Liebhard LLP
https://www.bernlieb.com
(212) 951-2030
[email protected]
SOURCE: Bernstein Liebhard LLP