#United States #Robbins Geller #San Diego #Class Action #Alarum Technologies

Alarum Technologies Class Action Initiated

In a significant legal development, Robbins Geller Rudman & Dowd LLP has announced a class action lawsuit against Alarum Technologies Ltd. This lawsuit is aimed at representing investors who acquired or purchased Alarum Technologies (NASDAQ: ALAR) securities between March 14, 2024, and August 26, 2024, a timeframe referred to as the "Class Period". The suit, officially captioned "Velvart v. Alarum Technologies Ltd., No. 25-cv-01263 (D.N.J.)", alleges misconduct by Alarum Technologies and several of its top executives, including violations of the Securities Exchange Act of 1934.

Background of the Case

As investors increasingly scrutinize corporate accountability, this class action lawsuit has emerged amidst concerns regarding Alarum Technologies' business practices and revenue reporting. The firm claims that during the Class Period, the defendants misled investors by making false and/or misleading statements regarding the company's performance and growth potential. Specifically, the allegations detail that Alarum Technologies was not as effective in retaining or expanding its customer base as it suggested, which subsequently impacted its ability to secure consistent revenue growth.

The lawsuit emphasizes that this misrepresentation significantly overstated the company's business and financial prospects. This became apparent when, on August 26, 2024, Alarum Technologies disclosed a projected revenue of only $7 million for Q3 2024, starkly lower than the $9.2 million expected by analysts. CEO Shachar Daniel attributed this disappointing outlook to declining customer spending that began in June 2024. This revelation triggered a sharp decline in the value of the company's American Depositary Receipts, which plummeted over 31% in value within a single trading day.

The Role of Lead Plaintiffs

The class action process allows any investor who purchased Alarum Technologies securities during the specified Class Period to seek designation as the lead plaintiff. The Private Securities Litigation Reform Act of 1995 outlines that a lead plaintiff should generally hold the greatest financial interest in the outcome of the case and be a typical representative of the class. This individual will guide the legal proceedings on behalf of all other affected investors and can select the law firm to handle the case.

It's crucial for potential lead plaintiffs to understand that their ability to benefit from any potential recovery does not hinge on their status as lead plaintiff. This ensures that all impacted parties retain an opportunity for recourse, regardless of their involvement in the lead role.

About Robbins Geller

Robbins Geller Rudman & Dowd LLP stands as a prominent legal force representing investors in cases of securities fraud. With over 200 skilled attorneys in ten locations, the firm boasts a stellar record of achieving substantial financial recoveries for investors. Having secured $6.6 billion in securities class action recoveries — significantly more than any other law firm in the past four years — Robbins Geller solidifies its reputation as a leader in this field, evidenced by historic recoveries such as the $7.2 billion in the Enron Corp. securities litigation.

Investors looking for additional information or seeking to join this class action can reach Robbins Geller through their dedicated attorney contacts J.C. Sanchez or Jennifer N. Caringal by calling 800-449-4900 or visiting their official website.

As the class action progresses, the legal community and investors alike will be watching closely, emphasizing the importance of corporate transparency and accountability in the financial markets.