Pomerantz Law Firm Takes Action Against Alarum Technologies Over Alleged Securities Violations

Major Legal Actions Introduced Against Alarum Technologies

Overview of the Situation

On March 11, 2025, Pomerantz LLP, a renowned law firm in securities litigation, revealed a class action complaint against Alarum Technologies Ltd. (NASDAQ: ALAR) and certain of its executives. The lawsuit, filed in the U.S. District Court for the District of New Jersey, is significant as it represents all individuals and entities who acquired Alarum's securities from March 14, 2024, to August 26, 2024. The aim is to recover damages due to claims of violations of the federal securities laws, specifically under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

Background of Alarum Technologies

Alarum Technologies is recognized as a Software as a Service (SaaS) provider, specializing in web data collection solutions and private internet browsing platforms. The company operates a consumption-based revenue model, where customers are charged based on usage of products and services. Despite touting itself as a market leader with the capacity to retain and expand its customer base, recent revelations indicate underlying problems regarding customer engagement.

Class Action Details

The class action alleges that throughout the stated Class Period, Alarum and its top officers made materially misleading statements regarding their operational performance and financial prospects. Notably, investors were led to believe in the company’s sustained growth, even while Alarum struggled to hold on to its existing customers.

Specifically, the lawsuit highlights a sharp decline in customer spending, which started in mid-2024. Case in point, by June of that year, Alarum experienced a 20% drop in revenue compared to the previous month. This was particularly alarming given the company maintained its narrative of delivering strong returns to shareholders.

The lawsuit articulates that the defendants failed to disclose the truth about Alarum’s faltering customer retention and expansion efforts, directly impacting the firm's ability to realize continual revenue growth—in other words, previous claims about Alarum’s performance were grossly overstated. The results for the second quarter of 2024 revealed a stark revenue figure of $7 million projected for Q3, significantly missing the $9.2 million that analysts had forecasted.

During an earnings call on August 26, 2024, the CEO attributed the disappointing guidance to decreased customer spending trends that had begun earlier in the year. The market reacted strongly to this news, with Alarum's American Depositary Receipt price plummeting by over $6, reflecting a loss of approximately 31% in a single day.

Implications for Investors

If you invested in Alarum Technologies between the specified dates, it’s crucial to understand the potentials of joining this class action. Interested parties are urged to contact the firm ahead of the deadline to secure a position as Lead Plaintiff.

For those seeking more information, the complaint is available on the Pomerantz Law website, alongside details on how to engage in the class action proceedings. This situation illustrates the broader challenges within corporate governance and investor transparency, emphasizing the need for rigorous oversight.

Conclusion

The developments surrounding Alarum Technologies reiterate the critical aspects of investor protection in the face of corporate mismanagement and the importance of legal frameworks in upholding securities laws. As we await the outcome of this lawsuit, stakeholders remain vigilant in their pursuit for justice and accountability in corporate practices. Pomerantz LLP has committed significant resources to represent the interests of affected investors, reflecting its longstanding role as a leader in the legal landscape of securities class actions.

For more information on the proceedings, potential investors can reach out to Danielle Peyton at Pomerantz LLP.