Shareholder rights law firm Robbins LLP is investigating the officers and directors of Yext, Inc. (NYSE: YEXT) to determine whether they breached fiduciary duties or violated securities laws in failing to reveal the truth about the impact COVID-19 would have on its revenue and earnings. Yext organizes a business's facts to provide answers to consumer questions online.
If you would like more information about our investigation of Yext, Inc.'s misconduct, click here.
What is this Case About: According to a complaint filed against Yext, Inc., as COVID-19 resurged throughout 2021, Yext consistently assured investors that pandemic-related impacts on the Company’s business were limited as the Company adapted to lockdowns and improved efficiencies in its sales and other operations. In reality, defendants failed to disclose that Yext’s revenue and earnings were significantly deteriorating because of, inter alia, poor sales execution and performance, as well as COVID-19 related disruptions, and therefore was unlikely to meet consensus estimates for its full year (“FY”) fiscal 2022 financial results and fiscal 2023 outlook.
Specifically, on March 8, 2022, Yext issued a press release announcing disappointing fourth quarter ("Q4") and FY fiscal 2022 results as well as the departure of its CEO and CFO. On a conference call discussing these results, the Company's incoming CEO disclosed that “we saw a really significant disruption in our business” such as “in Q4, 50% -- over 50% of our in-person events were canceled because of the Omicron surges[,]” while opining that Yext could “[a]bsolutely” improve its “sales motion so that it’s more efficient during disruptions like that[.]” Following this news, Yext's stock price fell $0.55 per share, or 9.29%, to close at $5.37 per share on March 9, 2022.
Next Steps: If you acquired your shares of Yext, Inc. between March 4, 2021 and March 8, 2022, you have legal options. Contact Robbins LLP for more information.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
Contact us to learn more:
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About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Yext, Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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