01/16/24 | $75.5M Settlement Approved
Hagens Berman is pleased to announce a settlement with Defendants totaling $75.5M. The settlement provides significant relief to purchasers of the securities of Zuora, Inc. from April 12, 2018 through May 30, 2019, both dates inclusive. The final approval hearing was held on January 12, 2024.
The Court approved the settlement January 16, 2024. For more details on the settlement, visit zuorasecuritieslitigation.com. The deadline for class members to submit a claim was December 30, 2023.
This is a securities fraud class action filed on behalf of all purchasers of Zoura, Inc. (“Zoura” or the “Company”) common stock between April 12, 2018 and May 30, 2019, inclusive (the “Class Period”), alleging claims pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 against Zoura, a cloud-based subscription software provider, its Chief Executive Officer, and its Chief Financial Officer.
The case arises from Defendants’ misrepresentations and concealment of delays in implementing and integrating RevPro, the company’s recently acquired revenue recognition management software application. Specifically, during the Class Period, Zuora promoted the strong demand for RevPro, its smooth integration with its core products, and its sales team’s superior execution. In truth, the demand for RevPro was not at the level represented, the Company was experiencing technical difficulties with integrating RevPro with its flagship product Zuora Billing, and Zuora suffered from sales execution problems that inhibited Zuora from cross-selling its products to its enterprise customers.
On May 30, 2019, the truth emerged when Zuora released disappointing first quarter 2020 financial results and substantially lowered its fiscal 2020 revenue guidance. The Company attributed the poor performance and outlook to delayed product integration for Billing and RevPro and sales execution problems, which “resulted in lower professional services and subscription revenue in the quarter.”
On this news, Zuora’s stock price plummeted from $19.90 per share on May 30, 2019 to $13.99 per share on May 31, 2019, nearly 30%, erasing over $500 million of market capitalization.
CASE TIMELINE
Hagens Berman secured a settlement with Defendants totaling $75,500,000. The settlement provides significant relief to purchasers of Zuora, Inc. common stock between April 12, 2018 and May 30, 2019, both dates inclusive, resolving allegations that Defendants misled investors about the actual state and functionality of its flagship products, Billing and RevPro
