KORNIT DIGITAL LTD. (KRNT) SHAREHOLDER CLASS ACTION ALERT: Bernstein Liebhard LLP Reminds Investors of the Deadline to File a Lead Plaintiff Motion in a Securities Class Action Lawsuit Against Kornit Digital Ltd. (KRNT) – Kornit Digital (NASDAQ:KRNT)
Did you lose money in investments with Kornit Digital Ltd.? Kornit Digital Ltd. is the right place to go if you feel this way. Contact us for a Shareholder Class Action Lawsuit Peter Allocco at (212) 951-2030 or [email protected] to discuss your rights.
New York, New York – (Newsfile Corp. – February 23, 2023) — Bernstein Liebhard LLP a nationally acclaimed investment rights law firm reminds investors about the deadline for filing a lead Plaintiff motion in a securities class-action lawsuit on behalf of investors who have purchased or acquired ordinary shares from Kornit Digital Ltd. (“Kornit”) KRNT Between February 17, 2021, and July 5, 2022, inclusive (the “Class Period”) The suit was filed in the United States District Court for the District of New Jersey.
Kornit is a manufacturer of industrial digital printing technologies that are used in the textile, garment, and apparel industries. End-users can print direct-to fabric (“DTF”) or direct-to garment (“DTG”) using the Company’s digital printers. DTG printing is where designs and images can be printed directly onto textiles like clothing and apparel. In DTF printing, large rolls of fabric pass through wide inkjet printers that print images and designs directly on to swaths of fabric that are then cut and sewn into a product, and can be used in the fashion and home décor industries. Kornit also sells textile inks, and other consumables to use with its digital printers. Kornit offers customer support contracts that provide technical support and equipment services to its printers.
Kornit repeatedly spoke out about the alleged competitive advantages it had and assured investors that they faced little competition in the DTG printing industry. Kornit also claimed that customers were in high demand for its digital printing products and consumables such as textile dyes. Kornit also provided services to help them maintain their digital printers and manage customer workflows. Kornit also assured investors that there was strong demand for its products and services, which would allow it to retain its existing customers and attract new ones. This would reduce the risk associated with a large portion of the Company’s revenues being concentrated in a few large customers.
Plaintiff claims that similar statements were made during the Class Period. Kornit and its senior executives were aware, or at least recklessly ignored, the fact that the Company’s digital printer business was plagued in quality control and customer service issues. These problems and deficiencies led Kornit to lose market share to its competitors. This resulted in a decline in revenue for the Company as customers moved to other digital printing companies. These misrepresentations led to Kornit’s ordinary shares trading at artificially high prices during the Class Period.
Investors first learned the truth when Fanatics and Delta Apparel, two of Kornit’s largest customers, announced on March 28th 2022 that they had been working with one of Kornit’s main competitors to create a digital printing technology that directly competed against Kornit’s products and services. Delta Apparel said that the technology had been installed in four of its digital print facilities already and was planning to expand. Fanatics and Delta Apparel both used the new technology in a rival fashion. It was a reflection of widespread dissatisfaction among Kornit’s most important customers about the Company’s quality of products and customer service.
Kornit reported a net loss for its first quarter 2022, even though it had reported revenues exceeding expectations. This compares to a profit in the previous year period of $5.1million. The revenue guidance that the Company issued for the second half of 2022 was also considerably below analysts’ expectations. Kornit blamed the Company’s disappointing guidance on a slowdown of orders from its customers in the ecommerce segment. The Company also admitted that it knew for at least two quarters that Delta Apparel had purchased digital printing systems from Kornit competitors.
This news caused the Kornit ordinary share price to fall $18.78 per shares, or 33.3%, and close at $37.63 on May 11, 2022.
Kornit then announced that it would report a significant revenue shortfall for the second quarter 2022 on July 5, 2022 after the market had closed. Kornit expects revenue to range from $56.4 million-$59.4 million for the second period. This is significantly lower than the revenue guidance that Kornit provided in May 2022, which was between $85 and $95 millions. Kornit explained that the revenue missed was due to “a substantially slower pace of direct to-garment (DTG), systems orders in quarter two than our prior expectations.”
The price of Kornit ordinary stock shares dropped $8.10, or 25.7% to close at $23.46 per sa on July 6, 2022.
You must apply to the Court by no later than April 30, if you want to be the lead plaintiff April 17, 2023. A lead plaintiff represents a class member and acts on behalf of the other class members when directing litigation. You don’t have to be a lead plaintiff in order to participate in any recovery. You can choose not to take any action and you could remain an absent member of the class.
If you Kornit shares were purchased or acquired. Kornit Digital Ltd. Contact Kornit Digital Ltd. Peter Allocco at (212) 951-2030 or [email protected].
Bernstein Liebhard LLP has recouped over $3.5 billion for clients since 1993. Apart from representing investors, the Firm was retained by many of the nation’s most powerful public and private pension funds to monitor and litigate their assets. The Firm’s success in defending hundreds of lawsuits and class actions has earned it a spot on The National Law Journal’s “Plaintiffs’ Hot List” thirteen consecutive times, and a listing in The Legal 500 for ten years.
ATTORNEY ADVERTISING. © 2022 Bernstein Liebhard LLP. Bernstein Liebhard LLP, 10 East 40th Street New York, New York 10016 (212) 779-1414 is the law firm responsible. Precedent results are not indicative of a similar outcome in future matters.
Contact Information:
Peter Allocco
Bernstein Liebhard LLP
https://www.bernlieb.com
(212) 951-2030
[email protected]
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