Attention investors who purchased shares of Zendesk, Inc. between February 6, 2019 and October 1, 2019:
Rigrodsky & Long is investigating claims brought in a securities fraud class action complaint against Zendesk, Inc. ("Zendesk") concerning whether Zendesk 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 February 6, 2019 and October 1, 2019, inclusive (the "Class Period"), concerning Zendesk's business, operations and prospects. These misrepresentations and omissions artificially inflated the price of Zendesk'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 Northern District of California on behalf of all persons or entities that purchased the common stock of Zendesk, Inc. (“Zendesk” or the “Company”) (NYSE: ZEN) between February 6, 2019 and October 1, 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 Zendesk during the Class Period, or purchased shares prior to the Class Period and still hold Zendesk, 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 email@example.com, 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: (a) Zendesk’s clients had been subject to data breaches dating back to 2016; (b) Zendesk was experiencing slowing demand for its SaaS offerings, particularly in Germany, the United Kingdom, and Australia, due in large part to political uncertainty and China trade issues there; and (c) as a result of the foregoing, Zendesk’s business metrics and financial prospects were not as strong as defendants had led the market to believe during the Class Period. 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, prior to September 24, 2019, a third party alerted Zendesk to the fact that the personally identifiable data of its chat and support accounts had been breached. By September 24, 2019, the Company’s internal investigation had revealed that some 10,000 accounts opened before November 2016 had been breached. On October 2, 2019, Zendesk for the first time publicly disclosed the data breach, stating that the data breach only affected customers who had signed up prior to November 1, 2016.
On this news, shares of Zendesk fell almost 4%, closing at $69.81 per share on October 2, 2019, on heavy trading volume.
If you wish to serve as lead plaintiff, you must move the Court no later than December 23, 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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