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Robbins LLP Takes Action for KnowBe4 Investors

In a significant development for former investors of KnowBe4, Inc. (NASDAQ: KNBE), Robbins LLP has informed shareholders that a class action lawsuit is underway. This action has been initiated on behalf of those who held KnowBe4 common stock as of December 7, 2022, when a key vote was scheduled regarding the company's acquisition by Vista Equity Partners Management LLC and its affiliates. Furthermore, the class action also pertains to investors who sold shares from the announcement of the deal on October 12, 2022, to the closure of the merger on February 1, 2023.

The Allegations Behind the Lawsuit

The basis of this lawsuit revolves around serious allegations that KnowBe4 misled its investors throughout the acquisition process. According to claims specified in the complaint, key SEC filings released by the defendants were marred with false or misleading statements. These inaccuracies included:

1. Unfair Sales Process: The lawsuit points out that the sales process was structured in a way that favored Vista.
2. Independence Issues: The purported independence of the Special Committee involved in the acquisition has come under scrutiny.
3. Misrepresentation of Intentions: It is alleged that KKR intended to increase its investments significantly after learning of the deal price, which may have influenced the outcome.
4. Favoritism: The complaint also cites favoritism towards Vista over other bidders which was not duly acknowledged to shareholders.
5. Lack of Consideration for Alternatives: The Special Committee reportedly failed to explore other strategic alternatives apart from the sale of KnowBe4 itself.
6. Conflicts of Interest: Concerns have been raised regarding the independence of Mitnick, a major non-rollover stockholder, who had a close relationship with Sjouwerman, suggesting potential conflicts.

These misleading statements and omissions prevented shareholders from making informed decisions regarding the merger, which in consequence hindered their voting rights during this critical period.

What This Means for Shareholders

Investors who wish to take active participation in this class action and serve as lead plaintiffs must file their motions by August 5, 2025. The lead plaintiff serves a pivotal role, representing the interests of all class members throughout the litigation. However, it is important to note that shareholders have the option to remain inactive and still be eligible for any potential recovery.

Robbins LLP operates on a contingency fee basis, meaning shareholders will incur no fees or costs unless there is a successful recovery. This approach aims to encourage broader participation from affected investors without the risk of financial burden.

About Robbins LLP

Established in 2002, Robbins LLP is a renowned law firm focused on advocating for shareholder rights. The firm has built a reputation for aiding shareholders in recovering losses, improving corporate governance, and holding executives accountable for misconduct. By initiating this class action, Robbins LLP underlines its commitment to ensuring that corporate giants remain accountable to their investors.

For further updates or to sign up for notifications regarding the resolution of this case or other corporate misconduct incidents, you're encouraged to join the Stock Watch program. This will ensure you stay informed about matters that may directly impact your investments.

In summary, this class action represents a significant step towards accountability and transparency within corporate governance, particularly concerning KnowBe4 and its acquisition by Vista Equity Partners. As the legal proceedings unfold, it remains crucial for shareholders to monitor the developments closely.

For any inquiries or to receive additional information, stockholders may submit their details via a form or contact attorney Aaron Dumas, Jr. directly at (800) 350-6003. The transparency and integrity of the acquisition process is essential to uphold investor trust, and Robbins LLP is taking action to ensure that these standards are met.