December 4, 2020 - An investor in shares of Splunk Inc. (NASDAQ: SPLK) filed a lawsuit in the U.S. District Court for the Northern District of California over alleged violations of Federal Securities Laws by Splunk Inc. in connection with certain allegedly false and misleading statements made between October 21, 2020 and December 2, 2020.

San Francisco, CA based Splunk Inc. develops and markets software solutions that enable organizations to gain real-time operational intelligence in the United States and internationally. Splunk Inc. reported that its Total Revenue rose from over $1.8 billion for the 12 months period that ended on January 31, 2019 to over $2.35 billion for the 12 months period that ended on January 31, 2020, and that its normalized Loss increased from $275.57 million to $336.66 million over those respective time periods.

After the markets closed on December 2, 2020, Splunk Inc. stunned the market when it announced its financial results for the third quarter of 2021. These results fell short of annual recurring and total revenue estimates, and Splunk reported a loss of 7 cents per share versus an expected gain of 8 cents per share. Splunk’s forecast for the fourth quarter of 2020 was also lower than expected. Numerous analysts have already downgraded the stock and cut their price targets. This includes JPMorgan, who was “blindsided by the magnitude of too many large deals slipping in the final days of October on the heels of an upbeat analyst day 10 days prior to the quarter close,” on October 21, 2020, “at which the company reaffirmed guidance and stated that it was excited about near-term and long-term growth prospects.” Shares of Splunk Inc. (NASDAQ: SPLK) declined from $207.41 per share on December 1, 2020 to as low as $153.30 per share on December 7, 2020.

According to the complaint the plaintiff alleges on behalf of purchasers of Splunk Inc. (NASDAQ: SPLK) common shares between October 21, 2020 and December 2, 2020, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between October 21, 2020 and December 2, 2020, the Splunk Inc. made materially false and/or misleading statements and/or failed to disclose that Splunk Inc. was not closing deals with its largest customers in the third fiscal quarter of 2021, and that Splunk Inc. was not hitting the financial targets it had previously announced.