Sprout Social(SPT) Prnewswire·2024-06-22 15:00Core Viewpoint - A securities class action lawsuit has been filed against Sprout Social, Inc. for alleged violations of federal securities laws, including fraudulent misrepresentations and omissions regarding the company's business and operations, leading to significant investor losses [1]. Group 1: Lawsuit Details - The lawsuit was filed in the United States District Court for the Northern District of Illinois against Sprout Social, Inc. (NASDAQ: SPT) [1]. - The class action complaint is titled Munch v. Sprout Social, Inc., et al., Case No. 24-cv-03867 [5]. - Investors have until July 12, 2024, to seek appointment as lead plaintiff or remain absent class members [5]. Group 2: Financial Impact - Following the announcement of the lawsuit, Sprout Social's stock price dropped by 28.82 per share on May 3, 2024 [4]. - On May 2, 2024, Sprout Social reported that it missed its revenue guidance for Q1 2024 and revised its full-year revenue guidance downward by $20 million [8]. - The CFO attributed the revenue miss to underestimating enterprise seasonality and self-induced sales execution headwinds [8]. Group 3: Company Statements - The incoming CEO mentioned that several strategic decisions made prior to Q1 were thought to be manageable but ultimately set the company back [8].