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SAN DIEGO–(BUSINESS WIRE)–May 3, 2022–
Shareholder rights law firm Robbins LLP is investigating IronNet, Inc. (NYSE: IRNT) f/k/a LGL Systems Acquisition Corp. and its officers and directors to determine whether they breached their fiduciary duties and violated securities laws. IronNet designs and develops solutions for the prevention of cyber attacks.
If you would like more information about our investigation of IronNet Inc.’s misconduct, click here.
What is this Case About: According to the complaint filed against IronNet, on August 27, 2021, IronNet became a publicly traded company via merger with LGL Systems Acquisition Corp. IronNet’s financial projections, which shareholders relied upon in voting for the merger, forecasted fiscal year 2022 revenues of $43 million to $45 million and annual recurring revenue (“ARR”) of $75 million.
On September 14, 2021, IronNet announced disappointing second quarter 2022 financial results of $6.1 million for Q2 2022 compared to $7.9 million for Q2 2021 and a net loss of $17.2 million. Notwithstanding, IronNet affirmed its projections and assured investors it was “on target with our first half guidance.” The result was a 38% increase in the stock price and a closing stock price of $32.13 per share.
However, by December 15, 2021, the Company splashed its expected fiscal year 2022 revenue to just $26 million with ARR of approximately $30 million. The Company also announced it had terminated its Chief Revenue Officer. On this news, IronNet’s stock fell 31% to close at $4.66 per share on December 15, 2021.
During the class period, IronNet materially overstated its business and financial prospects. Specifically, the Company was unable to predict the timing of significant customer opportunities, which constituted a substantial portion of its publicly-issued FY 2022 financial guidance.
Next Steps: If you acquired shares of IronNet, Inc. (IRNT) between September 15, 2021 and December 15, 2021, you have legal options. Contact us for more information.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
Contact us to learn more:
About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against IronNet, Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
Attorney Advertising. Past results do not guarantee a similar outcome.
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SOURCE: Robbins LLP
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PUB: 05/03/2022 05:42 PM/DISC: 05/03/2022 05:43 PM