SAN DIEGO–(BUSINESS WIRE)–The class: Law firm in shareholder law Robbins LLP reminds investors of a class action lawsuit on behalf of all persons and entities that have purchased or otherwise acquired IronNet, Inc. (NYSE: IRNT) f/k/a LGL Systems Acquisition Corp. between September 15, 2021 and December 15, 2021, for violations of the Securities Exchange Act of 1934. IronNet designs and develops solutions for the prevention of cyberattacks.
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What this case is about: IronNet, Inc. (IRNT) misrepresented its business and financial outlook by failing to predict the timing of material customer opportunities
According to the complaint, on August 27, 2021, IronNet became a publicly traded company through a merger with LGL Systems Acquisition Corp. IronNet’s financial projections, which shareholders relied on to vote for the merger, projected fiscal 2022 revenue of $43 million to $45 million. and annual recurring revenue (“ARR”) of $75 million.
On September 14, 2021, IronNet announced disappointing second quarter 2022 financial results of $6.1 million for the second quarter of 2022, compared to $7.9 million for the second quarter of 2021 and a net loss of 17.2 millions of dollars. Nevertheless, IronNet confirmed its projections and assured investors that it was “in line with our first-half guidance.” The result was a 38% increase in share price and a closing price of $32.13 per share.
However, as of December 15, 2021, the company has reduced its fiscal 2022 revenue forecast to just $26 million with an ARR of approximately $30 million. The Company also announced that it had terminated its Chief Revenue Officer. On this news, IronNet stock fell 31% to close at $4.66 per share on December 15, 2021.
During the Class Period, IronNet significantly overestimated its business and financial prospects. Specifically, the Company was unable to predict the timing of material customer opportunities, which formed a substantial part of its publicly released fiscal year 2022 financial guidance.
Next steps: If you acquired shares of IronNet, Inc. (IRNT) between September 15, 2021 and December 15, 2021, you have until June 21st, 2022, to ask the court to name you as the lead plaintiff in the class. A lead plaintiff is a representative party acting on behalf of other class members to direct litigation. You don’t have to be in the case to be eligible for a clawback.
All representation is done on a contingent fee basis. Shareholders do not pay any fees or expenses.
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