NEW ORLEANS, Dec. 1, 2021 /PRNewswire/ -- ClaimsFiler, a FREE shareholder information service, reminds investors with losses in excess of $100,000 that they have until January 3, 2022 to file lead plaintiff applications in a securities class action lawsuit against ON24, Inc. (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.
Get HelpON24 investors should visit us at https://claimsfiler.com/cases/nyse-ontf/ or call toll-free (844) 367-9658. Lawyers at Kahn Swick & Foti, LLC are available to discuss your legal options.
About the LawsuitON24 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.
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