Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Unilever and Yext and Encourages Investors to Contact the Firm
NEW YORK, June 29, 2022 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of Unilever PLC (NYSE: UL) and Yext, Inc. (NYSE: YEXT). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.*Unilever PLC (NYSE: UL)*
Class Period: September 2, 2020 – July 21, 2021
Lead Plaintiff Deadline: August 15, 2022
On July 19, 2021, Unilever’s subsidiary ice cream company, Ben & Jerry’s announced that, upon the expiration of the current licensing agreement by which its products had been distributed in Israel for decades, it would end sales of its ice cream in “Occupied Palestinian Territory” but would purportedly continue to sell its products in Israel. On this news, the Company’s ADR price fell $0.58 per ADR, or 1%.
Then, on July 22, 2021, CNBC reported that Texas and Florida were examining Ben & Jerry’s actions in connection with their legislation against the boycott, divestment, and sanctions (“BDS”) movement, a controversial movement whose objective is to coerce Israel into making concessions to the Palestinians. In a letter from the state of Florida’s CFO Jimmy Patronis, who controls Florida’s public pension funds, Florida would “be prohibited from investing in Ben & Jerry’s or its parent company, Unilever.” That also meant that Unilever could not enter or renew contracts with the state or any municipality in Florida.
On this news, Unilever’s ADR price fell $3.08, or 5.4%, to close at $53.45 per ADR on July 22, 2021, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that, in July 2020, Ben & Jerry’s board passed a resolution to end sales of its ice cream in “Occupied Palestinian Territory”; (2) the risks attendant to the Ben & Jerry’s board’s decision; (3) the foregoing risked adverse governmental actions for violations of laws, executive orders, or resolutions aimed at discouraging boycotts, divestment, and sanctions of Israel adopted by 35 U.S. states; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
For more information on the Unilever class action go to: https://bespc.com/cases/UL
*Yext, Inc. (NYSE: YEXT)*
Class Period: March 4, 2021 – March 8, 2022
Lead Plaintiff Deadline: August 16, 2022
Yext organizes a business’ facts to provide answers to consumer questions online. The Company operates yext platform, a cloud-based platform that allows its customers to, among other things, provide answers to consumer questions, control facts about their business and the content of their landing pages, and manage their consumer reviews. Yext’s website describes its service as “a modern, AI-powered Answers Platform that understands natural language so that when people ask questions about a business online they get direct answers – not links.”
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.
On March 8, 2022, Yext issued a press release announcing its fourth quarter ("Q4") and FY fiscal 2022 results. Among other items, Yext reported Q4 fiscal 2022 revenue of $100.9 million, falling short of consensus estimates by $140,000; first quarter ("Q1") fiscal 2023 revenue outlook of $96.3 million to $97.3 million, versus consensus estimates of $103.79 million; Q1 fiscal 2023 non-GAAP net loss per share outlook of $0.08 to $0.07, versus consensus estimates of $0.05; FY fiscal 2023 revenue outlook of $403.3 million to $407.3 million, versus consensus estimates of $444.71 million; and FY fiscal 2023 non-GAAP net loss per share outlook of $0.19 to $0.17, versus consensus estimates of $0.09. The Company further disclosed the departure of its CEO and CFO.
That same day, on a conference call to discuss Yext's Q4 and FY fiscal 2022 results, the Company's incoming CEO, Michael Walrath ("Walrath"), addressed the Company's disappointing financial results, revealing, inter alia, that "we have seen fragmentation in our interactions with customers and our ability to deliver premium service and support" and that, "[i]n hindsight, it is clear we were too focused on building sales capacity and not focused enough on other functions that drive productivity, particularly sales enablement, training, client success and services." Walrath also 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 that call, a Truist Securities analyst lowered the firm's rating on Yext to hold from buy and slashed its price target to $6 from $17, noting, among other things, that key performing indicators showed an "unexpected slowdown" in Q4, guidance for fiscal 2023 shows no near-term turn around, and that "planned changes under new management (in go-to-market strategy, sales organization) carry execution risks and the timing for a meaningful and sustainable revival in growth is unclear[.]”
Following these disclosures, Yext’s stock price fell $.055 per share, or 9.29%, to close at $5.37 per share on March 9, 2022.
The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Yext's revenue and earnings were significantly deteriorating because of, inter alia, poor sales execution and performance, as well as COVID-19 related disruptions; (ii) accordingly, Yext was unlikely to meet consensus estimates for its full year ("FY") fiscal 2022 financial results and fiscal 2023 outlook; and (iii) as a result, the Company's public statements were materially false and misleading at all relevant times.
For more information on the Yext class action go to: https://bespc.com/cases/YEXT
*About Bragar Eagel & Squire, P.C.:*
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
*Contact Information:*
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com