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EVBG.US
id: 2142

Everbridge ($EVBG) Acquisition Integration and Organic Growth Case

The court has ruled on whether the plaintiffs are certified as a class.
C.D. California
Court
2:22-cv-02249
Case number
11/04/2019
Class period Start
02/24/2022
Class period End
  • $EVBG investors filed a claim against Everbridge for using acquired revenue to mask slowing organic growth and overstating the successful integration of acquired companies.
  • After Everbridge announced its chief executive’s departure and sharply lowered its 2022 growth outlook, $EVBG fell 45.4% on December 10, 2021.
  • $EVBG investors can join this case to be notified about potential recovery.
Case Details:

Between November 4, 2019, and February 24, 2022, Everbridge told investors its acquisitions were strategic, strengthened its Critical Event Management platform, and supported long-term growth. Executives emphasized that the platform was fully integrated and that the company’s acquisition strategy remained focused on building products rather than buying revenue.

However, during this period, investors allege Everbridge acquired nine companies to boost reported revenue while organic growth slowed. Everbridge allegedly failed to disclose many acquired products, and sales teams remained separate, making its services harder to sell. Acquisition revenue masked stagnant organic growth, including a substantially understated revenue contribution from xMatters, and the rapid acquisition strategy created operational complexity and unsustainable growth.

Then, on December 9, 2021, the company announced its chief executive’s departure and reduced expected 2022 revenue growth to 20%–23%.

$EVBG fell $52.37 on December 10, closing at $63.00. Additional revelations followed on February 24, 2022, including another guidance cut and admissions that incomplete integrations had obstructed sales.

By February 25, shares had dropped to $30.61, representing a total decline of 73.5% over the correction period.

Based on these events, $EVBG investors filed a claim against Everbridge, alleging the company:
  • It overstated organic growth and the success of its acquisition strategy.
  • It hid that acquired products and sales teams were not fully integrated, making its offerings harder to sell.
  • It caused investor losses when lower guidance and integration problems were revealed.
Investors argue that Everbridge misled the market about organic growth and acquisition integration, causing losses when the truth emerged.
Case Type
US Securities Class Action
Case Status
Class Certification result
Alleged Offence
Misleading Statements, 
Financial Misrepresentation, 
Fraud, 
Failure to Disclose, 
Omissions
Suspected Party
Directors, 
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
12/09/2021
Filing date
04/04/2022

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