Class Action Filed Against Alarum Technologies Ltd. for Securities Violations

Class Action Filed Against Alarum Technologies Ltd.

On April 8, 2025, Pomerantz LLP announced the initiation of a class action lawsuit against Alarum Technologies Ltd. (NASDAQ: ALAR) and specific company officers in the United States District Court located in New Jersey. This lawsuit arises from a class of investors who purchased Alarum's securities between March 14, 2024, and August 26, 2024. The legal proceedings seek to recover damages attributed to alleged violations of federal securities laws, specifically targeting breaches outlined in Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5.

Background on Alarum Technologies

Alarum Technologies operates as a global provider of Software as a Service (SaaS) solutions, specializing in web data collection and private internet browsing. The company implements a consumption-based model, where customers are billed according to their usage of the services offered. Alarum has positioned itself as a market leader, asserting its ability not only to retain existing customers but also to expand engagement with them.

However, unbeknownst to its investors, Alarum has faced significant challenges in maintaining and growing its customer base. By mid-2024, the company reported a notable reduction in customer spending, leading to a revenue drop of 20% from the previous month. Despite this downturn, Alarum continued to project a narrative of strong performance, claiming that their operational effectiveness and financial results were robust, which later proved misleading.

The Allegations

The lawsuit accuses the defendants of making materially false and misleading statements about the company's business operations and financial outlook. The claims include deceptive assurances that the company effectively retained and expanded customer relationships and overstated its revenue growth potential. As customer spending waned, analysts began to notice a disconnect between Alarum's claims and the actual financial performance.

On August 26, 2024, Alarum released its Q2 earnings report along with guidance for Q3 2024, revealing a revenue estimate of $7 million—drastically below the analysts' expectations of $9.2 million. This announcement sent shockwaves through the market, leading to a stark decline in the company’s American Depository Receipt (ADR), which fell $6.77, or approximately 31.34%, closing at $14.83.

Legal Actions and Next Steps

Investors who acquired Alarum shares during the specified class period are urged to act promptly, as they have until April 15, 2025, to request the court to appoint them as the Lead Plaintiff for the class. Interested individuals can obtain a copy of the complaint and additional information regarding the case from Pomerantz LLP’s website.

Pomerantz LLP, with an esteemed reputation in the realm of corporate, securities, and antitrust class litigation, has a long history of championing the rights of investors and recovering damages for those affected by securities fraud and other corporate misdeeds. Founded over 85 years ago, the firm continues to lead in securities class action litigations, pursuing justice on behalf of affected investors.

For further inquiries about this class action or to discuss your case, potential class members can contact Danielle Peyton at Pomerantz LLP via email or telephone. Those reaching out via email should include relevant personal details and information regarding their stock transactions.

In conclusion, this legal development surrounding Alarum Technologies serves as a crucial reminder of the importance of transparency and accountability in corporate communications. As this case unfolds, both investors and industry observers will be keeping a close watch on the implications for the broader market and the operational integrity of companies within the SaaS sector.