New York, New York--(Newsfile Corp. - August 26, 2020) - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Anaplan Inc. ("Anaplan" or the "Company") (NYSE: PLAN) of the October 23, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Anaplan stock or options between November 21, 2019 and February 26, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/PLAN. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com.
CONTACT:
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
rgonnello@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of all those who purchased Anaplan common stock between November 21, 2019 and February 26, 2020 (the "Class Period"). The case, Grobler v. Anaplan Inc. et al., No. 3:20-cv-05959 was filed on August 24, 2020.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the Company was undergoing sales organization and execution challenges; (2) these organizational challenges were causing the Company to miss on closing very important large deals; and (3) as a result, Anaplan's financial guidance for "calculated billings growth" was baseless and unattainable. Further, while in possession of this material non-public information, Anaplan insiders dumped approximately $30 million worth of Anaplan stock at artificially inflated prices.
On February 27, 2020, the Company announced that, although it slightly exceeded revenue guidance for the quarter ($98.2mm versus $97.5mm estimate), which grew at rate of 42% year-over-year, its calculated billings for the fourth quarter fell far short of expectations. Specifically, billings were only $126 million, representing a growth rate of 25%, which was well below consensus estimates of $138 million, and roughly half of the Company's historical growth rates of 46% to 59%, and far less than the Company's rate of revenue growth of over 40%.
On this news, the Company's stock price fell from $58.09 per share on February 26, 2020 to $44.03 per share on February 27, 2020: a $14.06 or 24.20% drop.