IronNet, Inc.

  • Active

Investigation
12/15/2021

Initial Lawsuit
04/22/2022

Lawsuit Progression
07/15/2022

Investigation

  • Continous Holding
    September 15, 2021 to December 15, 2021
  • Proposed Claim
    Securities Violation

IronNet’s affirmation of financial guidance on September 14, 2021 (Q2) came in direct contradiction with its withdrawal disclosed on December 15, 2021 (Q3) because of uncertainties as to when “strategic transactions” would “come in.” During the conference call, IronNet’s executive explained that the timing of the transactions was, in fact, “difficult to predict.”

This post is open for investors to gather facts and findings and track their exposure to related lawsuits. We invite investors and shareholders to contribute to this investigation for their own benefit, add events to the factual timeline below and vote on events’ pertinence.

A lawsuit was subsequently filed. We update this post regularly.

Main Event

"difficult to predict" - Withdrawing Guidance

12/15/2021

SEC Filing

IronNet releases its Q3 2022 financial results, along with the withdrawing of its financial guidance for the fiscal year 2022. The company now expects revenue of approximately $26 million and annual recurring revenue (ARR) of approximately $30 million.

“Our prior outlook for both the quarter and fiscal year was supported by what we assessed as late-stage multi-million dollar strategic customer opportunities, the majority of which are in the U.S. public sector. We had previously expected to finalize these opportunities in the second half of the fiscal year, however they remain pending primarily due to government delays in getting funding through to federal budgets. These continue to be viable opportunities in our pipeline. Given the difficulty in predicting when they will close, we have removed them from our ARR guidance. We will disclose any strategic contracts that are accretive to our revised fiscal year ARR outlook,” said GEN (Ret.) Keith Alexander, Chairman and co-CEO of IronNet.

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close Previous close Price variation Percentage variation
$4.66 $6.8 $-2.14 -31.47%
See more on Factual Timeline

Initial Lawsuit

First Complaint - 04/22/2022

An IronNet, Inc. (IRNT) shareholder filed a federal securities class action lawsuit on behalf of all purchasers of IronNet securities between September 15, 2021, and December 15, 2021, inclusive.

  • Filing Date
    04/22/2022
  • Class Period
    09/15/2021 to 12/15/2021
  • Transgression
    Securities Violation
  • Filing Firms
    Bernstein Liebhard LLP
    Johnson Fistel, LLP
    The Office of Craig C. Reilly, Esq.
  • Case Title
    Adam Grad v. IronNet, Inc. et al
  • Docket Number
    1:22-cv-00449
  • Court
    Virginia Eastern District Court
  • Free File
    Complaint

Allegations

According to the complaint, 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 allegedly failed to disclose to investors that:

(i) the company had materially overstated its business and financial prospects;
(ii) the company was unable to predict the timing of significant customer opportunities which constituted a substantial portion of its publicly-issued FY 2022 financial guidance;
(iii) the company had not established effective disclosure controls and procedures to reasonably ensure its public disclosures were timely, accurate, complete, and not otherwise misleading; and
(iv) as a result, the company’s public statements were materially false, misleading, and/or lacked any reasonable basis in fact at all relevant times.

Defendants

  • Company
    IronNet, Inc.
  • Chief Executive Officer
    Keith B. Alexander
  • Chief Executive Officer
    William E. Welch
  • Chief Financial Officer
    James C. Gerber

Lawsuit progression

  • Docket Number
    1:22-cv-00449
  • Court
    Virginia Eastern District Court

Lead Counsel

07/15/2022

The court issued an order appointing the lead plaintiff and lead counsel.

Amended Complaint

08/29/2022

Plaintiffs bring this federal securities class action on behalf of themselves and all persons or entities who purchased IronNet securities from September 14, 2021 through December 15, 2021, inclusive.

  • Updated Class Period
    09/14/2021 to 12/15/2021
  • Free File
    Amended Complaint

    • Operative complaint

[stockdio-historical-chart symbol=”IRNT” stockExchange=”NYSENasdaq” width=”500″ height=”330″ motif=”blinds” palette=”humanity” includeVolume=false]

Factual Timeline

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