Nextdoor (KIND) Poor Post-Merger Growth Case

• $KIND stockholder filed a claim vs. Nextdoor for overstating post-merger market size and its growth prospects.

• In November 2022, the poor financial results caused $KIND to fall 11%, losing $47M+ in shareholder value.

On March 1, 2022, Nextdoor (KIND) announced the first disappointing post-merger financial results. The growth rate dropped to 48% from 66% year-over-year, contrary to earlier claims of sustained growth.

• Then, on May 10, 2022, Nextdoor said global user growth rose by just 1%, but U.S. users fell by 100,000. This caused a $KIND 8% drop.

• On August 9, 2022, Nextdoor revealed revenue growth slowed to 19% year-over-year, with U.S. weekly active users decline. On this news, $KIND dropped by about 25%.

Finally, on November 8, 2022, Nextdoor reported a $1M revenue drop and $KIND fell around 11%.

In total, $KIND dropped almost 90% from its post-merger high, leading to significant losses for investors.

Based on these events, $KIND stockholder filed a claim against Nextdoor and its leaders in the N.D. California court, accusing them of the following:

• Before the merger, Nextdoor's finances looked better due to COVID-19's impact, affecting future revenue.

• Nextdoor's growth slowed and the market size was smaller than claimed.

Considering all the representations, investors have reasons to suspect that Nextdoor misled them about the company's prospects and financial state.