Did you lose any money from investments in Kornit Digital Kornit Digital Ltd. is the right place to go if you feel this way. Contact us for a Shareholder Class Action Lawsuit Peter Allocco Call (212) 951-2030 or [email protected] to discuss your rights.
NEW YORK, March 8, 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 July 5, 2022, inclusive (“the “Class Period”) The lawsuit was filed in The United States District Court for the District of New Jersey It alleges violations of Securities Exchange Act of 1935.
Kornit is a manufacturer of industrial digital printing technologies that are used in the textile, garment, and apparel industries. End-users have the option to print directly-to-garment (“DTG”) or directly-to-fabric (“DTF”) with the digital inkjet printers of Kornit. DTG printing allows designs and images to be printed directly on finished textiles, such as apparel and clothing. 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 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 manage digital printer workflows and maintain digital printers. 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 during the 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 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 largest customers, announced that they had been working with one of Kornit’s main competitors for several months to create a digital printing technology that directly rivals the products and services offered by Kornit. 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 Comparable to a profit in the first quarter 2022, $5.1 Million In the previous year period. The revenue guidance issued by the Company for the second quarter 2022 was also significantly lower than 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. Kornit also acknowledged that for the past two quarters, it knew that Delta Apparel was one of its largest customers and had bought digital printing systems form a competitor to Kornit.
This news caused the Kornit ordinary shares to drop in price $18.78 Per share, or 33.3% to close at $37.63 per share on May 11, 2022.
Then, on July 5, 2022After the market closed, Kornit announced that it would report a significant revenue shortfall for the second quarter 2022. Kornit anticipated that the revenue for its second quarter would fall between $1.01 and $1.02. $56.4 million To $59.4 MillionThis is far less than the revenue guidance for between $85 million $95 Million The Company had not provided information for two months prior to the incident. May 2022. Kornit explained that the significant revenue loss was due to “a significantly slower pace for direct-to-garment orders (DTG) system orders in the second quarter compared to our previous expectations.”
This news caused the Kornit ordinary shares to drop in price $8.10 To close at, per share or 25.7% $23.46 per share on July 6, 2022.
You must make a motion to the Court no later that April 15th if you are interested in serving as the lead plaintiff. 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. If you decide to not take action, you can remain an absent class member.
If you 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 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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