An investigation on behalf of investors of Zscaler, Inc. (NASDAQ: ZS) shares over potential securities laws violations by Zscaler, Inc. and certain of its directors and officers in connection with certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Zscaler, Inc. (NASDAQ: ZS) concerning whether a series of statements by Zscaler, Inc. regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

San Jose, CA based Zscaler, Inc. operates as a cloud security company worldwide. Zscaler, Inc went public in March 2018. Zscaler, Inc sold 12 million shares at $16.00 per share in its initial public offering. Zscaler, Inc. reported that its Total Revenue rose from $125.71 million for the 12 months period that ended on July 31, 2017 to $190.17 million for the 12 months period that ended on July 31, 2018, and that Net Loss decreased from $35.46 million to $33.64 million over those respective time periods.

Shares of Zscaler, Inc. (NASDAQ: ZS) grew from $24.95 per share in May 2018 to as high as $89.54 per share in July 2019.

On September 11, 2019, Zscaler, Inc disclosed that its larger deals were taking longer to close. Following this announcement, several analysts cut their target prices for ZScaler stock.

Shares of Zscaler, Inc. (NASDAQ: ZS) declined to $46.03 per share on October 1, 2019.