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Oklahoma City, OK (August 26, 2020) – On August 24, 2020, a securities class action lawsuit was filed in the United States District Court for the Northern District of California against Anaplan, Inc. (NYSE: PLAN). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is November 21, 2019 through February 26, 2020. More specifically, according to the Complaint, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose to investors that: (1) the Company was undergoing sales organization and execution challenges; (2) these organizational challenges were causing the Company to miss on closing very important large deals; and (3) as a result, Anaplan’s financial guidance for “calculated billings growth” was baseless and unattainable. Further, while in possession of this material non-public information, Anaplan insiders dumped approximately $30 million worth of Anaplan stock at artificially inflated prices.
On February 27, 2020, Anaplan reported billings of $126 million for fourth quarter 2019, representing a growth rate of 25%, which was well below consensus estimates and roughly half of the Company’s historical growth rates of 46% to 59%. The Company attributed the shortfall to the inability to close some large deals at the end of the quarter due to certain “management changes.”
On this news, the Company’s share price fell $14.06 per share, or 25%, to close at $44.03 per share on February 27, 2020, thereby injuring investors.
Plaintiff seeks to recover damages on behalf of all Anaplan, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Friday, October 23, 2020 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
If you wish to discuss this action, obtain further information and participate in this or any other securities litigation, or should you have any questions or concerns regarding this notice or preservation of your rights, please contact: Robin Hester at firstname.lastname@example.org