Yext, Inc.

Investigation
03/08/2022

Initial Lawsuit
06/17/2022

Lawsuit Progression
08/16/2022

Investigation

Continous Holding
March 4, 2021 to March 8, 2022
Proposed Claim
Securities Violation

Did Yext, Inc. mislead investors regarding its response to COVID-19 related disruptions? Did the company tout the true nature of its financials to hide “poor sales execution and performance”?

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 will update this post as it unfolds

Main Event

Covid-19 Disruptions

03/08/2022

SEC Filing

Yext discloses its results for Q4 2022 and the fiscal year 2022, including revenue of $100.9 million, or +9%, and gross profit of $76.4 million, or +8% compared to Q4 2021.

For Q1 2023, Yext projects revenue in the range of $96.3 million to $97.3 million and in the range of $403.3 million to $407.3 million for the year, compared to a consensus estimate of $444.7 million.

The company also announces the departure of both its CEO, Howard Lerman, and its CFO Steven Cakebread, replaced respectively by Chairman Michael Walrath and chief accounting officer Darryl Bond.

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
$5.37	$5.92	$-0.55	-9.29%

See more on Factual Timeline

Initial Lawsuit

First Complaint - 06/17/2022

A Yext, Inc. investor filed a federal securities class action lawsuit on behalf of a class consisting of all persons and entities that purchased or otherwise acquired Yext securities between March 4, 2021, and March 8, 2022, both dates inclusive.

Filing Date
06/17/2022
Class Period
03/04/2021 to 03/08/2022
Transgression
Securities Violation
Filing Firms
Pomerantz LLP
Case Title
Menzione v. Yext, Inc. et al
Docket Number
1:22-cv-05127
Court
New York Southern 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) Yext’s revenue and earnings were significantly deteriorating because of, inter alia, poor sales execution and performance, as well as COVID-19 related disruptions;
(ii) accordingly, Yext was unlikely to meet consensus estimates for its full-year fiscal 2022 financial results and fiscal 2023 outlook; and
(iii) as a result, the company’s public statements were materially false and misleading at all relevant times.