Cognyte Requests to Dismiss Class Action Filed by Investors

Court: S.D. New York

Case: 1:23-cv-01769

Cognyte has requested the court to dismiss the lawsuit filed by investors. The court will determine whether the case proceeds.

What is this lawsuit about?

On June 28, 2022, Cognyte released its Q1 2022 financial results, which significantly missed analyst expectations. Revenue fell 25% to $87 million, well below the forecasted 2% decline. Analysts downgraded the company and cited “low pipeline conversion” tied to reputational harm from scrutiny of the cyber surveillance industry, especially following the U.S. blacklisting of NSO Group.

On this news, CGNT fell 28.66%, seriously damaging investors.

Previously, on December 16, 2021, Meta issued a “Threat Report” identifying Cognyte as part of the “surveillance-for-hire industry” accused of targeting individuals such as journalists and human rights activists. This revelation contributed to a nearly 21% drop in CGNT stock by December 22, 2021.

Then, on March 1, 2023, shareholders filed a claim against Cognyte.

What can you do to recover your losses now?

We’re keeping track of all updates and will notify CGNT investors about potential recovery.

More than 600 companies are currently facing securities class action lawsuits, and over 100 are already paying settlements. Connect your brokerage account to automatically check which ones you may have missed.