Labaton Keller Sucharow LLP is Lead Counsel in a securities class action against Everbridge, Inc. (Everbridge or the Company) and certain of its executives (collectively, Defendants).

Everbridge is a global software company, whose core product was its Critical Event Management platform—a collection of products designed to manage and respond to different types of critical events from a single platform.  The case alleges that between February 18, 2020 and February 24, 2022, inclusive (the Class Period), Defendants misled investors about several acquisitions—most notably xMatters, which was its largest acquisition to date.  Specifically, Defendants concealed the Company’s slowing organic revenue growth by downplaying revenue contributions from the acquired companies and misled investors about purportedly “seamless” integrations that were plagued by significant problems.

The truth began to emerge through two corrective disclosures.  First, on December 9, 2021, Defendants reduced their 2022 revenue guidance to 20-23% growth, well below the Company’s historical 30%-plus revenue growth forecast.  Everbridge also announced the resignation of its CEO.  On this news, Everbridge’s stock price fell more than 45%.  Second, on February 24, 2022, Defendants further lowered Everbridge’s 2022 revenue guidance to 15-17% growth and revealed the negative impact of the incomplete integrations on Everbridge’s business.  In response, Everbridge’s stock price fell approximately 34%.  As a result, investors lost billions in shareholder value.

The case is Sylebra Capital Partners Master Fund LTD et al. v. Everbridge, Inc. et al., No. 2:22-cv-02249-FWS-RAO (C.D. Cal.).  The Honorable Fred W. Slaughter appointed Sylebra Capital Partners Master Fund Ltd, Sylebra Capital Parc Master Fund, and Sylebra Capital Menlo Master Fund (the Sylebra Funds) as Lead Plaintiffs.  Labaton Keller Sucharow represents the Sylebra Funds. 

Lead Plaintiffs filed an Amended Complaint, and later, a Second Amended Complaint—both of which the District Court dismissed.  Lead Plaintiffs appealed the dismissal to the Ninth Circuit Court of Appeals (the Ninth Circuit), who reversed and remanded.  Once remanded, the Parties engaged in discovery and further proceedings, including Lead Plaintiffs’ Motion for Class Certification.