IronNet (IRNT) $6.625M Investor Settlement
IronNet has agreed to a $6.625M settlement with $IRNT investors over claims that it overstated its financial outlook and missed key customer deals critical to its 2022 forecasts.
The lawsuit claims IronNet misled investors by providing overly optimistic financial projections and failing to disclose delays in key contracts crucial to its revenue targets. This resulted in an inflated stock price, which later dropped by 31% on December 15, 2021, when the company slashed its revenue forecasts.
August 27, 2021: IronNet became a publicly traded company by merging with a special purpose acquisition company (SPAC).
September 14, 2021: IronNet releases an optimistic revenue forecast, boosting the stock price by 38%.
December 15, 2021: IronNet cuts its revenue forecast for 2022, leading to a 31% stock drop.Background
IronNet positioned itself as a leader in cybersecurity, with several large strategic contracts, particularly in the U.S. public sector, expected to drive its revenue growth. However, many of these critical contracts were delayed due to government funding issues, which significantly impacted the company’s ability to meet its financial projections for 2022. Despite knowing about these delays, IronNet continued to assure investors of its strong financial outlook. When the company was forced to remove these contracts from its revenue forecasts in December 2021, the stock dropped sharply by 31%, leading to investor losses.
IronNet has agreed to settle for $6.625 million to resolve all claims related to misleading statements made about its financial outlook and key contract delays. The parties will now work to finalize the settlement terms and submit them to the court for approval.
If this situation financially harmed you, you can file a claim to receive your portion of the settlement. For eligibility details and other information, you can check the FAQ section below
Frequently Asked Questions
All persons and entities who purchased or otherwise acquired IronNet, Inc. securities on the open market on a U.S. stock exchange between September 14, 2021 and December 15, 2021, inclusive, and were damaged thereby.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
If 100% of investors file their claims - the average payout will be $0.27 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $1.08 per share.
If you're eligible, you can file your claim directly from this case page by clicking the "Collect Payout" button.
More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed — or file manually for this case.
11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:
Prepare documents for your payout.
Audit the claim and make sure you get the maximum possible payout.
File a claim with the settlement administration.
Correspond with the settlement administration to resolve emerging issues.
Deliver payout directly to your brokerage account.
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.