Perion Network Ltd. (PERI) Securities Fraud Class Action

Digital advertiser Perion Network and most senior executives were recently hit with an investor class action, following the company’s announcement of disastrous preliminary Q1 2024 results and updated full year 2024 guidance.

The suit, which is brought on behalf of damaged investors who purchased, or otherwise acquired, Perion common stock during the period from Feb. 9, 2021 through Apr. 5, 2024, inclusive (the “Class Period”),  alleges claims of securities fraud stemming from Defendants’ alleged misstatements and omissions.

Specifically, the complaint alleges that Defendants misrepresented and concealed that:

(1) Perion’s search advertising business was not a reliable and significant growth driver and was in fact in decline;

(2) Perion’s long-term relationship with Microsoft and search services agreement would not provide stability for Perion’s search advertising business;

(3) there was an increased risk of Microsoft acting to unilaterally change its advertising pricing and mechanisms to the detriment of Perion while the search services agreement was in place;

(4) Perion’s AI technology and Microsoft’s investment in ChatGPT would not protect or grow Perion’s search advertising revenue; and

(5) based on the foregoing, Defendants lacked a reasonable basis for their positive statements about Perion’s search advertising business and related financial results, growth, and prospects.

The truth about Perion’s search advertising business emerged on Apr. 8, 2024, when Perion announced disappointing preliminary Q1 2024 results and slashed its FY guidance.

The company revealed that “[i]n the first quarter of 2024, Perion experienced a decline in search advertising activity, attributable to changes in advertising pricing and mechanisms implemented by Microsoft Bing in its Search Distribution marketplace.”

Perion also revealed that, “[t]hese adjustments led to a reduction in Revenue Per Thousand Impressions (RPM) for both Perion and other Microsoft Bing distribution partners” and “contributed to decreased search volume.”

The Company also disclosed that for the full 2024 year, it now expects revenue in the range of $590 million to $610 million, down from the prior guidance range of $860 to $880 million the Company gave on Febr. 7, 2024

On this news, the price of Perion common stock declined by $8.61 per share, or appx. 40%, in a single trading day.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the PERI securities class-action case about?

We are investigating whether Perion knowingly concealed adverse changes in its search advertising business.

WHAT SHOULD I DO?

I worked at PERI. What should I do?

If you were an employee of PERI, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICPATE?

Am I affected? What do I need to do to participate?

If you were an investor in PERI, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any PERI investor participate?

In most class-action cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.