#United States #New Jersey #Securities Law #Pomerantz LLP #Alarum Technologies

Investor Alert: Class Action Filed Against Alarum Technologies

Pomerantz LLP has recently filed a class action lawsuit against Alarum Technologies Ltd., a provider of web data collection solutions, on behalf of investors who purchased Alarum securities between March 14, 2024, and August 26, 2024. This legal action, initiated in the U.S. District Court for the District of New Jersey, seeks to address allegations that the company and certain executives violated federal securities laws.

Background on Alarum Technologies

Alarum Technologies, known for its Software as a Service (SaaS) offerings, operates on a consumption-based model, charging clients based on their usage of services provided through its enterprise and consumer platforms. The firm's business model relies on a concentrated customer base, which makes its revenue generation particularly susceptible to the spending habits of a small number of clients.

The company positioned itself as a market leader, boasting success in retaining and expanding client relationships. However, evidence suggests that Alarum faced challenges in maintaining this narrative, as customer spending began to decline in mid-2024. Reports indicate that by June 2024, the company experienced a significant drop in revenue, reporting a 20% decrease month-over-month. Despite these issues, Alarum continued to assert to investors that its performance and business model were robust.

Allegations in the Class Action

The lawsuit accuses the company of making materially false statements regarding its operations and business prospects throughout the class period. Key allegations include failure to disclose:

• - The company's challenges in retaining and expanding customer relationships.
• - The adverse impact this would have on Alarum's revenue generation.
• - The resultant overstatement of the firm’s growth and financial prospects.

On August 26, 2024, following the release of disappointing second-quarter results and lower-than-expected revenue guidance for the third quarter, Alarum's stock suffered a significant drop, with its American Depositary Receipt (ADR) price falling by over 31%. This sharp decline raised questions about the company's transparency in communicating its financial health to investors.

Industry analysts swiftly responded to Alarum's announcement, highlighting concerns over the company's inability to clearly articulate the reasons behind the decrease in demand from customers. This situation implies that many investors may have made decisions based on misleading information, prompting the class action lawsuit.

How Investors Can Participate

Investors who bought Alarum securities during the class period have until April 15, 2025, to request to lead the class action. The lawsuit aims to seek damages for the alleged securities violations and to hold Alarum accountable for its actions. A copy of the complaint can be accessed through Pomerantz's official website.

In this context, Pomerantz LLP emphasizes its reputation as a leading firm in corporate securities litigation, with a history of advocating for victims of securities fraud. The firm is known for its commitment to holding companies accountable for misleading their investors, making this lawsuit a substantial effort in the ongoing fight for shareholder rights.

Inquiries related to the lawsuit can be directed to Danielle Peyton at Pomerantz LLP, who encourages potential plaintiffs to provide relevant information regarding their investment in Alarum Technologies.

As litigation proceeds, the outcome of this case could not only impact Alarum but also set a precedent for how similar cases are handled in the tech sector and the accountability of SaaS providers within the marketplace.

For ongoing updates, interested parties should monitor news related to Alarum Technologies and follow legal announcements from Pomerantz LLP.