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 at (212) 951-2030 or [email protected] to discuss your rights.
New York, New York – (Newsfile Corp. – February 23, 2023) — Bernstein Liebhard LLP a nationally acclaimed investment rights law firm reminds investors about the deadline for filing a lead Plaintiff motion in a securities class-action lawsuit on behalf of investors who have purchased or acquired ordinary shares from Kornit Digital Ltd. (“Kornit”) KRNT Between February 17, 2021, and July 5, 2022, inclusive (the “Class Period”) The suit was filed in the United States District Court for the District of New Jersey. It alleges violations of the Securities Exchange Act of 1984.
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 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, consumable products (such as textile inks), and the services Kornit offered customers to maintain and control their digital printers, as well managing customer workflow, were in strong demand. Kornit assured investors that it would be able to maintain its customer base and attract new customers due to the company’s strong demand. It also said that this would help limit the risks associated a significant portion of its revenues being concentrated with 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. These misrepresentations led to Kornit’s ordinary shares trading at artificially high prices during the Class Period.
Investors first learned the truth when Fanatics and Delta Apparel, two of Kornit’s largest customers, announced on March 28th 2022 that they had been working with one of Kornit’s main competitors to create a digital printing technology that directly competes with Kornit’s products and services. Delta Apparel stated that the new technology was already in place in four of its digital printing facilities, and plans to continue expanding. 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.
Kornit reported a net loss for its first quarter 2022, even though it had reported revenues exceeding expectations. This compares to a profit in the previous year period of $5.1million. 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. 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 ordinary stock shares fell $18.78, or 33.3% to close at $37.63 per sa on May 11, 2022.
Kornit then announced that it would report a significant revenue shortfall for the second quarter 2022 on July 5, 2022 after the market had closed. Kornit forecasted that revenue for the second quarter would be between $56.4 million and $59.4 millions. This is far below the $85 million to $95 million revenue guidance the Company gave less than two months ago, in May 2022. 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 want your case to be heard by the Court. April 17, 2023. A lead plaintiff is an individual who represents other class members and acts as a mediator in the direction of litigation. However, your ability to share in any recovery does not require you to serve as a lead plaintiff. You may choose to not take action.
If you Kornit shares were purchased or acquired. Kornit Digital Ltd. Contact Kornit Digital Ltd. Peter Allocco at (212) 951-2030 or [email protected].
Bernstein Liebhard LLP, has helped its clients recover over $3.5 Billion since 1993. Apart from representing investors, the Firm was retained by many of the country’s largest public and private pension funds to monitor and pursue litigation. The Firm’s success litigating hundreds upon lawsuits and classes actions earned it a place on The National Law Journal’s “Plaintiffs’ Hot List” thirteen times. The Firm is also listed in The Legal 500 ten years consecutively.
ATTORNEY ADVERTISING. © 2022 Bernstein Liebhard LLP. Bernstein Liebhard LLP is the law firm responsible for this ad. Precedent results are not indicative of a similar outcome in future matters.
Bernstein Liebhard LLP
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/158937