| COMPANY |
Zendesk, Inc. |
| COURT |
United States District Court for the Northern District of California |
| CASE NUMBER |
19-cv-06968 |
| JUDGE |
The Honorable Charles R. Breyer |
| CLASS PERIOD |
February 15, 2019 – October 1, 2019 |
| SECURITY TYPE |
Common Stock |
Case Background:
On October 24, 2019, the initial complaint in this securities class action was filed against Zendesk, Inc. (“Zendesk” or the “Company”) and certain of Zendesk’s directors and officers, asserting violations of Sections 10(b) and 20(a) of the Securities Exchange Act. This is a federal securities class action brought on behalf of all purchasers of Zendesk common stock between February 15, 2019 and October 1, 2019, both dates inclusive (the “Class Period”).
The complaint alleges that throughout the Class Period, Defendants disseminated materially false and misleading statements to the investing public and failed to disclose adverse facts pertaining to the Company’s business, operations, and financial results. Specifically, the complaint alleges the Company concealed material information and/or failed to disclose that: (1) Zendesk’s clients had been subject to data breaches dating back to 2016; (2) 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 (3) 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.
Current Status of Case:
Lead Plaintiff filed a consolidated amended complaint (the “Complaint”) on April 14, 2020. On November 9, 2020, the Court issued an Order granting Defendants' Motion to Dismiss. Lead Plaintiff’s second amended complaint (the “Second Complaint”) was filed on January 8, 2021. Defendants filed a Motion to Dismiss the Second Complaint on January 22, 2021. On March 2, 2021, the Court granted the Motion to Dismiss the Second Complaint. Lead Plaintiff filed a Notice of Appeal with the Ninth Circuit Court of Appeals on April 20, 2021. On March 2, 2022, the Ninth Circuit Court of Appeals affirmed the District Court’s decision to dismiss the case. This action has concluded.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.