Zuora investors may receive additional information about the case by clicking the link "Submit Your Information" above.
According to the complaint, Zuora is a cloud-based subscription management platform. Its business consists of three components: Zuora Central Platform, a subscription management hub; order-to-revenue products; and an application marketplace. Its flagship products are Zuora RevPro (“RevPro”), a revenue recognition automation solution that enables customers to group transactions into revenue contracts and performance obligations, and Zuora Billing (“Billing”), which is designed for subscription billing.
The Class Period commences on April 12, 2018, when Zuora filed its Initial Public Offering Prospectus.
According to the complaint, on May 30, 2019, in connection with its first quarter 2020 financial results, Zuora lowered its fiscal 2020 revenue guidance to a range of $268 million to $278 million, from prior guidance of $289 million to $293.5 million. Zuora reported that the product integration for Billing and RevPro “is taking longer than expected” and that “the technical work to complete the integration is taking time as these are complex mission-critical systems.” As a result of the product integration delay, Zuora slowed down RevPro implementations. Zuora also reported certain sales execution problems that slowed down its ability to cross-sell its products, which “resulted in lower professional services and subscription revenue in the quarter.” Following this news, Zuora’s share price fell $5.91 per share, nearly 30%, to close at $13.99 per share on May 31, 2019.
The complaint alleges that, throughout the Class Period, the defendants failed to disclose to investors that: (1) Zuora would focus on implementing RevPro for new customers ahead of the deadline to comply with accounting standard ASC 606; (2) as a result, Zuora lacked adequate resources to integrate RevPro with the core business; (3) Zuora would focus on RevPro integration a year after the acquisition closed; (4) delays in integrating RevPro would materially impact the business; (5) the market for RevPro was limited to customers seeking to implement new accounting standards such as ASC 606; (6) after the deadline for ASC 606 compliance passed, demand for RevPro was reasonably likely to decline; and (7) as a result of the foregoing, the defendants’ positive statements about Zuora’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you are a member of the class described above, you may no later than August 13, 2019 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Returning the attached form or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. 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 toll free at 1-844-887-9500 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org. 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.
Kessler Topaz Meltzer & Check, LLP
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