Kornit Digital Ltd., (KRNT)
Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against Kornit Digital Ltd. (“Kornit” or “the Company”) (NASDAQ: KRNT) and certain of its officers, on behalf of all persons and entities that purchased or otherwise acquired Kornit securities between February 17, 2021 and July 5, 2022 (the “Class Period”) including purchases directly in Kornit Digital’s November 19, 2021 public stock offering (the “Offering”). Such investors are encouraged to join this case.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws.
The Complaint further alleges that (a) one of Kornit Digital’s largest customers, DTG2Go, a Delta Apparel subsidiary, was transitioning to a competitor’s product offerings for its manufacturing needs; (b) that a second key customer, Fanatics, had decided to outsource production, a substantial portion of which was going to producers using non-Kornit Digital systems; (c) that, as a result of (a)-(b) above, Kornit Digital expected to and ultimately did lose substantial demand for its products and services; (d) that Kornit Digital was suffering from lessening demand for high-margin consumables, which caused the Company to suffer from an unfavorable sales mix and lower gross margins; (e) that e-commerce demand for Kornit Digital products was slowing down as facets of the economy reopened following the COVID-19 pandemic, which was having a negative effect on Company revenue; (f) that Kornit Digital had artificially boosted sales during the pandemic by selling more inventory than was needed to its customers, which caused a customer inventory glut which pulled sales forward and had contributed to slowing demand; and (g) that as a result of (a)-(f) above, Kornit Digital’s projected financial results and market opportunity were not achievable and lacked a reasonable basis in fact.
A class action lawsuit has already been filed. You can review a copy of the Complaint and sign the certification form or you may contact Peretz Bronstein, Esq. or his Law Clerk and Client Relations Manager, Yael Nathanson of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Kornit, you have until April 17, 2023 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC represents investors in securities fraud class actions and shareholder derivative suits. The firm has recovered hundreds of millions of dollars for investors nationwide. Attorney advertising. Prior results do not guarantee similar outcomes.