Tufin Software Technologies Ltd.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired Tufin Software Technologies Ltd. (“Tufin” or the “Company”) (NASDAQ: TUFN) securities pursuant and/or traceable to the Company’s April 2019 Initial Public Offering (“IPO”). Investors have until June 5, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that in the materials accompanying the IPO and throughout the Class Period, the Company failed to disclose that: (i) Tufin’s customer relationships and growth metrics were overstated, particularly with respect to North America; (ii) Tufin’s business was deteriorating, primarily in North America; and (iii) as a result, Tufin’s representations regarding its sustainable financial prospects were overly optimistic.
In the IPO, Tufin sold approximately 7.7 million ordinary shares at $14.00 per share.
On January 9, 2020, Tufin announced preliminary unaudited revenue and non-GAAP operating loss estimates for its fourth fiscal quarter of 2019. Tufin announced that it expected to report total revenue in the range of $29.5 million to $30.1 million, compared to its previous guidance of total revenue in the range of $34.0 million to $38.0 million, and that Tufin now anticipated non-GAAP operating loss in the range of $1.1 million to $2.6 million, compared to the Company’s previous guidance of non-GAAP operating profit in the range of $0.0 million to $3.0 million. According to Tufin’s CEO, “[t]he primary reason for our revenue shortfall was our inability to close a number of transactions, primarily in North America, that we anticipated would close but did not close by the end of the quarter.”
On this news, Tufin’s share price fell $4.14 per share, or 24%, to close at $13.08 on January 9, 2020.
If you acquired Tufin securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.