April 28, 2020 - The court denied the defendants' motion to dismiss.
January 22, 2020 - A motion to dismiss the consolidated amended complaint was filed.
November 8, 2019 - A consolidated amended complaint was filed.
June 14, 2019 - An investor in shares of Zuora, Inc. (NYSE: ZUO) filed a lawsuit in the U.S. District Court for the Northern District of California over alleged violations of Federal Securities Laws by Zuora, Inc. in connection with certain allegedly false and misleading statements made between April 12, 2018 and May 30, 2019.
San Mateo, CA based Zuora, Inc. provides cloud-based software on a subscription basis that enables companies in various industries to launch, manage, and transform into a subscription business. Zuora, Inc. reported that its Total Revenue rose from $167.92 million for the 12 months period that ended on January 31, 2018 to $235.19 million for the 12 months period that ended on January 31, 2019 and that Net Loss over those respective time period increased from $47.15 million to $77.59 million.
On May 30, 2019, Zuora, Inc lowered its fiscal 2020 revenue guidance to a range of $268 million to $278 million, from prior guidance of $289 million to $293.5 million, citing problems integrating RevPro, as well as sales execution problems.
Shares of Zuora, Inc. (NYSE: ZUO) declined from $37.78 per share on June 18, 2019 to as low as $13.04 per share on June 3, 2019.
According to the complaint the plaintiff alleges on behalf of purchasers of Zuora, Inc. (NYSE: ZUO) common shares between April 12, 2018 and May 30, 2019, that the defendants violated Federal Securities Laws.
More specifically, the plaintiff claims that between April 12, 2018 and May 30, 2019, the Defendants failed to disclose to investors that the Company would focus on implementing RevPro for new customers ahead of the deadline to comply with accounting standard ASC 606, that, as a result, the Company lacked adequate resources to integrate RevPro with the core business, that the Company would focus on RevPro integration a year after the acquisition closed, that delays in integrating RevPro would materially impact the business, that the market for RevPro was limited to customers seeking to implement new accounting standards such as ASC 606, that, after the deadline for ASC 606 compliance passed, demand for RevPro was reasonably likely to decline, and that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.