SAN DIEGO, March 12, 2020 /PRNewswire/ -- Shareholder Rights Law Firm Johnson Fistel, LLP, is investigating potential claims against Zuora, Inc. ("Zuora" or the "Company") (NYSE: ZUO) for violations of federal securities laws.
On March 12, 2020, reported fourth-quarter fiscal 2020 financial results. Total revenue was $70.4 million, and GAAP loss from operations was 21 cents a share. Analysts had forecast a loss of 10 cents a share on revenue of $71.9 million. Zuora also said its financial chief officer, Tyler Sloat, was resigning.
Last year a class-action lawsuit was filed on behalf of purchasers of the securities of Zuora from April 12, 2018 through May 30, 2019, inclusive. (the "Class Period"). According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) Zuora would focus on implementing RevPro for new customers ahead of the deadline to comply with accounting standard ASC 606; (2) Zuora lacked adequate resources to integrate RevPro with the core business; (3) Zuora would focus on RevPro integration a year after the acquisition closed; (4) delays in integrating RevPro would materially impact the business; (5) the market for RevPro was limited to customers seeking to implement new accounting standards such as ASC 606; (6) after the deadline for ASC 606 compliance passed, demand for RevPro was reasonably likely to decline; and (7) as a result of the foregoing, defendants' positive statements about Zuora's business, operations, and prospects were materially misleading and/or lacked a reasonable basis. When the true details entered the market, the lawsuit claims that investors suffered damages.
If you are a current, long-term shareholder of Zuora,you may have standing to hold the Company harmless from the alleged harm caused by the officers and directors of the Company by making them personally responsible. You may also be able to assist in reforming the Company's corporate governance to prevent future wrongdoing.
If youare interested in learning more about the investigation, please contact lead analyst Jim Baker (jimb@johnsonfistel.com) at 619-814-4471. If emailing, please include a phone number.
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About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.
Contact:
Johnson Fistel, LLP
Jim Baker, 619-814-4471
jimb@johnsonfistel.com
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SOURCE Johnson Fistel, LLP