Pluralsight, Inc. (NYSE: PS)
A class action has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of Pluralsight, Inc. (NYSE: PS) securities during the period between August 2, 2018 to July 31, 2019, (the “Class Period”).
The Company completed its initial public offering in May 2018, selling 23.8 million shares of Pluralsight stock at $15.00 per share. Less than a year later, on March 6, 2019, Pluralsight completed a secondary public offering (“SPO”) of 15.6 million shares of stock at $29.25 per share, raising gross proceeds of more than $450 million. The SPO served as a massive cash-out for Pluralsight insiders, as all of the proceeds went to insiders and related parties and none to help fund corporate development or Company initiatives.
The complaint alleges that throughout the Class Period, Pluralsight misrepresented and/or failed to disclose adverse facts regarding the Company’s business and prospects. Specifically, the Company failed to disclose that Pluralsight was experiencing substantial delays in hiring and properly training the salesforce necessary to meet its lofty billing projections. In addition, the Company knew at the time of the SPO that it was behind schedule onboarding new sales representatives, which was hurting the Company’s sales execution and preventing Pluralsight from meeting its high growth projections. Instead of disclosing such facts at the time of the SPO, defendants intentionally obscured and failed to disclose this pertinent information to investors. As a result of defendants’ misrepresentations and omissions, Pluralsight stock traded at artificially inflated prices of more than $36 per share during the Class Period, which allowed Company insiders to cash out their Pluralsight stock at inflated prices in the SPO.
Then on July 31, 2019, after the market closed, Pluralsight announced disappointing financial results for the second quarter of 2019, disclosing that its billings growth rate had sharply deteriorated. The Company blamed its declining growth in billings on sales execution challenges and other issues with its salesforce. Pluralsight also disclosed that its Chief Revenue Officer was resigning. In response to these disclosures, the price of Pluralsight stock plummeted, falling $12.13 per share in a single day – or nearly 40% – to close at $18.56 per share on August 1, 2019.
If you are a current shareholder and/or purchased stock during the period between August 2, 2018 to July 31, 2019, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.