NEW YORK, Feb. 27, 2023
Did you lose money in investments with Kornit Digital Ltd.? Visit Kornit Digital Ltd. Contact us for a Shareholder Class Action Lawsuit Peter Allocco Call (212) 951-2030 Oder [email protected] To discuss your rights.
NEW YORK, Feb. 27, 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 on 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 technology for 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 provides technical support, repair, and customer assistance through customer support agreements.
Kornit repeatedly emphasized the claimed competitive advantages of its technology throughout the Class Period and assured investors that there was virtually no competition in DTG printing. Kornit also claimed that customers were in high demand for its digital printing products and consumables such as textile dyes. Kornit also provided services to help them maintain their digital printers and manage their customer workflows. Kornit assured investors that it would be able to retain existing customers and draw new customers due to the strong demand for its products. It also said that this would minimize the risks of 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.
The truth began to dawn on 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 competes with the products and services Kornit offers. 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 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.
On May 11, 2022Kornit reported a net loss in spite of reporting revenue that exceeded 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 blamed the Company’s disappointing guidance on a slowdown of orders from its customers in the ecommerce 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 To close at, per share or 33.3% $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 previous revenue guidance of between $85 Million $95 Million In the event that the Company did not provide information within two months, 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.”
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 apply to the Court by no later than April 30, if you want to be 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. 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 Call (212) 951-2030 [email protected].
Bernstein Liebhard LLP’s recovery has been over $2.5 billion since 1993. $3.5 Billion Its clients. Apart from representing investors, the Firm was retained by large public and private pension funds across the country to monitor and pursue litigation. 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.
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]
View original content to download multimedia:https://www.prnewswire.com/news-releases/kornit-digital-ltd-nasdaq-krnt-shareholder-class-action-alert-bernstein-liebhard-llp-reminds-investors-of-the-deadline-to-file-a-lead-plaintiff-motion-in-a-securities-class-action-lawsuit-against-kornit-digital-ltd-nasdaq–301756938.html
SOURCE Bernstein Liebhard LLP