(NASDAQ GS: PS)
Attention investors who purchased shares of Pluralsight, Inc. between August 2, 2018 and July 31, 2019:
Rigrodsky & Long is investigating claims brought in a securities fraud class action complaint against Pluralsight, Inc. ("Pluralsight") concerning whether Pluralsight and certain of the Company's directors and/or officers made materially false and misleading statements and failed to disclose materially adverse facts during the period August 2, 2018 and July 31, 2019, inclusive (the "Class Period"), concerning Pluralsight's business, operations and prospects. These misrepresentations and omissions artificially inflated the price of Pluralsight's stock throughout the Class Period.
Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities that purchased the common stock of Pluralsight, Inc. (“Pluralsight” or the “Company”) (NASDAQ GS: PS) between August 2, 2018 and July 31, 2019, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
If you purchased shares of Pluralsight during the Class Period, or purchased shares prior to the Class Period and still hold Pluralsight, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Seth D. Rigrodsky or Timothy J. MacFall at Rigrodsky & Long, P.A., 300 Delaware Avenue, Suite 1220, Wilmington, DE 19801, by telephone at (888) 969-4242, by e-mail at firstname.lastname@example.org, or at http://rigrodskylong.com/contact-us/.
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects. Specifically, the Complaint alleges that the defendants concealed from the investing public that: (i) Pluralsight was experiencing sales execution challenges which impacted its billings; (ii) Pluralsight was experiencing substantial delays in hiring and properly training its salesforce that would be necessary to meet its lofty billing projections; (iii) Pluralsight was behind on the onboarding of new sales representatives which was causing sales execution issues and preventing the Company from meeting its high growth projections; and (iv) as a result of the foregoing, Defendants’ public statements were materially false and/or misleading and/or lacked a reasonable basis. As a result of defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on July 31, 2019, after the close of the markets, Pluralsight disclosed that its billings growth had sharply deteriorated from over 40% to just 23% year-over-year. During an analyst conference call, Defendant Skonnard attributed the shortfall to “sales execution challenges, which impacted our billings.” Defendant Budge disclosed that “[s]imply put, . . . there were dozens of reps that we needed to bring on board at the end of last year, beginning into this year, so they would ramp and become fully productive in the second quarter. And there [were] for a number of reasons delays in bringing them on board until, . . . early to mid-second quarter.” Notably, this statement shows that the Company was aware of the hiring delays at the time of its secondary public offering.
On this news, shares of Pluralsight declined almost 40%, closing at $18.56 per share on August 1, 2019, on heavy trading volume.
If you wish to serve as lead plaintiff, you must move the Court no later than October 15, 2019. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Rigrodsky & Long, P.A., with offices in Delaware, New York, and California, has recovered hundreds of millions of dollars on behalf of investors and achieved substantial corporate governance reforms in numerous cases nationwide, including federal securities fraud actions, shareholder class actions, and shareholder derivative actions.
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