IRONNET INC. (NYSE: IRNT) SHAREHOLDER CLASS ACTION ALERT: Bernstein Liebhard LLP Announces that a Securities Class Action Lawsuit Has Been Filed Against IronNet, Inc. (NYSE: IRNT)
Did you lose money on investments in IronNet? If so, please visit IronNet, Inc. Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or pallocco@bernlieb.com to discuss your rights.
NEW YORK, April 25, 2022 /PRNewswire/ -- Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired the securities of IronNet, Inc. ("IronNet" or the "Company") (NYSE: IRNT) between September 15, 2021 and December 15, 2021, inclusive (the "Class Period"). The lawsuit was filed in the United States District Court for the Eastern District of Virginia and alleges violations of the Securities Exchange Act of 1934.
IronNet designs and develops solutions for cyber-attacks. The Company offers IronDefense, a network traffic analysis platform that delivers scalable behavioral analysis and integrated packet-level cyber hunt to detect advanced threats, and IronDome, a collective defense solution that delivers machine-speed visibility of potential threat campaigns targeting participant industry peers. The Company also provides a suite of technologies that provide real-time threat assessment and updates, behavioral modeling, big data analytics, and proactive responses, as well as consulting and training programs to protect against current and emerging threats. IronNet's security solutions include collective defense, network traffic analysis, and cyber assessment tools. The Company serves energy and utilities, financial services, healthcare and life sciences, defense, and public sector industries.
On August 27, 2021, IronNet became a publicly traded company via a merger (the "Merger") with LGL Systems Acquisition Corp. ("LGL"), a blank check company otherwise known as a special purpose acquisition vehicle. In anticipation of the Merger vote, on August 10, 2021, IronNet updated its financial forecasts "[d]ue to shifts in the anticipated closing of several new customer contracts." The Company forecasted fiscal year 2022 ("FY 2022") (ended January 31, 2022) revenues of $43-$45 million and annual recurring revenue ("ARR") of $75 million.
On September 14, 2021, after market close, defendants issued a press release entitled "IronNet Announces Fiscal Second Quarter 2022 Financial Results," which announced disappointing revenue of $6.1 million for Q2 2022 (ended July 31, 2021) compared to $7.9 million for Q2 2021, which missed expectations by $1.3 million. However, IronNet also announced Q2 2022 ARR of $24.1 million compared to $19.5 million in Q2 2021 and reaffirmed its FY 2022 revenue guidance of $43-45 million and ARR guidance of $75 million. The Company's stock price immediately skyrocketed 38%, or $8.81 per share, from a close of $23.32 per share on September 14, 2021 to a close of $32.13 per share on September 15, 2021. By September 16, 2021, IronNet's stock price had doubled, reaching an intra-day high of $47.50 per share.
On December 15, 2021, after market close, Defendants issued a press release entitled "IronNet Reports Third Quarter Fiscal 2022 Financial Results," in which they slashed IronNet's FY 2022 guidance, which they announced shortly before the Merger vote and reaffirmed just three months earlier. On this news, the price of IronNet's stock declined more than 31% to close at $4.66 per share on December 16, 2021.
Plaintiff alleges that Defendants' statements were materially false and misleading when made because IronNet: (i) materially overstated its business and financial prospects; (ii) was unable to predict the timing of significant customer opportunities which constituted a substantial portion of its publicly-issued FY 2022 financial guidance; and (iii) had not established effective disclosure controls and procedures to reasonably ensure its public disclosures were timely, accurate, complete, and not otherwise misleading.
If you wish to serve as lead plaintiff, you must move the Court no later than June 21, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn't require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased IRNT securities, and/or would like to discuss your legal rights and options please visit IronNet, Inc. Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or pallocco@bernlieb.com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and listed in The Legal 500 for ten consecutive years.
ATTORNEY ADVERTISING. © 2022 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
Contact Information:
Peter Allocco
Bernstein Liebhard LLP
https://www.bernlieb.com
(212) 951-2030
pallocco@bernlieb.com
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SOURCE Bernstein Liebhard LLP
