Kahn Swick & Foti, LLC (“KSF”) and KSF partner, the former Attorney General of Louisiana, Charles C. Foti, Jr., remind investors that they have only until January 3, 2022 to file lead plaintiff applications in a securities class action lawsuit against ON24, Inc. (NYSE: ONTF), if they purchased the Company’s shares issued in connection with its February 2021 initial public stock offering (the “IPO”). This action is pending in the United States District Court for the Northern District of California.
What You May Do
If you purchased shares of ON24 and would like to discuss your legal rights and how this case might affect you and your right to recover for your economic loss, you may, without obligation or cost to you, contact KSF Managing Partner Lewis Kahn toll-free at 1-877-515-1850 or via email (lewis.kahn@ksfcounsel.com), or visit https://www.ksfcounsel.com/cases/nyse-ontf/ to learn more. If you wish to serve as a lead plaintiff in this class action by overseeing lead counsel with the goal of obtaining a fair and just resolution, you must request this position by application to the Court by January 3, 2022.
ON24 and certain of its executives are charged with failing to disclose material information in the Company’s IPO Registration Statement and Prospectus, violating federal securities laws. Specifically, the Complaint alleges that the Registration Statement and Prospectus failed to disclose, among other things, that the surge in customers leading up to the IPO consisted of a significant number that, driven by COVID-19 related demand, did not fit the Company’s traditional customer profile, and, as a result, were significantly less likely to renew their contracts leading to an increase in churn.
On August 10, 2021, the Company provided its 2Q2021 financial results including guidance below analysts’ expectations and disclosed “higher-than-expected churn and down-sell from customers [it] signed up in the second quarter of last year during the peak of COVID…primarily in the first-time renewal cohort, customers who signed up one-year contracts last year and who were up for renewal.” On this news, the Company’s share price plummeted approximately 31%, damaging investors.
The case is Douvia v. ON24, Inc., 21-cv-08578.
About Kahn Swick & Foti, LLC
KSF, whose partners include former Louisiana Attorney General Charles C. Foti, Jr., is one of the nation’s premier boutique securities litigation law firms. KSF serves a variety of clients – including public institutional investors, hedge funds, money managers and retail investors – in seeking recoveries for investment losses emanating from corporate fraud or malfeasance by publicly traded companies. KSF has offices in New York, California, Louisiana and New Jersey.
To learn more about KSF, you may visit www.ksfcounsel.com.
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Contacts
Kahn Swick & Foti, LLC
Lewis Kahn, Managing Partner
lewis.kahn@ksfcounsel.com
1-877-515-1850
1100 Poydras St., Suite 3200
New Orleans, LA 70163
