EVERBRIDGE ALERT: Bragar Eagel & Squire, P.C. Announces that a Class Action Lawsuit Has Been Filed Against Everbridge, Inc. and Encourages Investors to Contact the Firm
NEW YORK–(BUSINESS WIRE)–#Action–Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, announces that a class action lawsuit has been filed against Everbridge, Inc. (“Everbridge” or the “Company”) (NASDAQ: EVBG) in the United States District Court for the Central District of California on behalf of all persons and entities who purchased or otherwise acquired Everbridge securities between November 4, 2019 and February 24, 2022, both dates inclusive (the “Class Period”). Investors have until June 3, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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Everbridge is a software company that provides enterprise software applications to automate and accelerate organizations’ operational response to “critical events” in order to keep people safe and organizations running. These critical events include public safety threats, information technology outages, cyber-attacks, product recalls, and supply-chain interruptions.
Shortly before and throughout the Class Period, Everbridge engaged in a buying spree, acquiring nine separate companies. The Action alleges that, throughout the Class Period, Defendants misled investors by: (1) failing to disclose that Everbridge was experiencing integration problems with respect to these acquisitions; (2) using the revenues from these acquisitions to mask increasingly stagnant organic growth; and (3) failing to disclose that the COVID pandemic was having a material impact on the size of the deals that Everbridge was able to obtain, with a negative effect on the Company’s revenue growth.
The truth regarding Everbridge’s failed growth strategy was partially revealed through a press release issued on December 9, 2021. On that date, the Company disclosed that Defendant David Meredith had unexpectedly resigned as Everbridge’s CEO. The Company also provided 2022 revenue growth guidance of between 20-23%, well below the expected baseline of 30%.
On this news, Everbridge’s common stock price fell almost by half, a price decline of $52.37 per share, or 45.4 percent, to close at $63.00 per share on December 10, 2021.
Then, on February 24, 2022, the full truth was revealed. On that date, Everbridge announced its financial results for the fourth quarter and full year 2021, as well as its guidance for the first quarter and full year 2022. As to revenue, the Company guided only 20% growth in the first quarter of 2022 and a scant 15-17% growth for the full year, even lower than the disappointing guidance previously issued in December 2021. Further, in the related earnings call that same day, the new interim co-CEO, Vernon Irvin, disclosed for the first time, despite prior representations to the contrary, that “these products and businesses” obtained from Everbridge’s buying binge “have created incremental product line complexity that produce integration challenges and have complicated our go-to-market efforts.” He also stated that Everbridge will pause engaging in any new M&A activity to focus on product integration, as well as significantly “simplify” and reduce its product offerings. Defendant Patrick Brickley, the other interim co-CEO and CFO, stated that the focus on product integration and simplification would alone result in an approximate $17 million of revenue loss. Brickley also disclosed that the decline in deal sizes “has been exacerbated by lingering effects of COVID,” and that it would result in another $15 million reduction in revenues.
On all this news, Everbridge’s common stock price fell another $15.68 per share, or 33.9 percent, to close at $30.61 per share on February 25, 2022.
If you purchased or otherwise acquired Everbridge shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Alexandra Raymond by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contacts
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Alexandra B. Raymond, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com