Class Action Filed Against Alarum Technologies Ltd. Over Securities Violations

Class Action Filed Against Alarum Technologies Ltd.

On April 14, 2025, Pomerantz LLP, a well-respected law firm in securities litgation, announced that it has filed a class action lawsuit against Alarum Technologies Ltd. The lawsuit, which has been docketed under case number 25-cv-01263, is filed in the United States District Court for the District of New Jersey. This action has been taken on behalf of all individuals and entities, excluding the defendants, who purchased Alarum securities over a specific period from March 14, 2024, to August 26, 2024.

The primary purpose of this lawsuit is to seek damages stemming from alleged violations of the federal securities laws by Alarum and some of its top officials. Investors who acquired Alarum securities during this class period are being encouraged to reach out to the law firm before the deadline on April 15, 2025, to express their interest in being appointed as a Lead Plaintiff for the class.

Background on Alarum Technologies

Alarum Technologies Ltd., a global provider of Software as a Service (SaaS), specializes in offering web data collection solutions as well as private internet browsing services. Operating under a consumption-based business model, Alarum generates revenue by charging customers based on their usage of services. Due to the concentrated nature of their customer base, fluctuations in spending patterns can significantly influence the company's financial performance.

Although Alarum has marketed itself as a 'market leader' with a solid record in retaining and expanding customer engagements, this portrayal belies certain underlying issues that would later come to light. By mid-2024, internal challenges began to surface when Alarum reported a reduction in customer spending, culminating in a 20% decrease in revenue compared to the preceding month. Despite these developments, the company maintained the public narrative that it was successfully delivering strong performance and value to its shareholders.

Allegations Made in the Lawsuit

The class action complaint alleges that throughout the specified class period, Alarum's executives made material misrepresentations regarding the company's performance, operational capabilities, and future prospects. The suit contends that the defendants were aware of the declining customer retention and expansion but chose to withhold such information from the public. By not disclosing these challenges, the company's leadership overstated Alarum's ability to generate sustained revenue growth.

Significantly, on August 26, 2024, Alarum announced disappointing second-quarter results, revealing projected revenues of $7 million for the upcoming third quarter, which was considerably below the analyst expectations of $9.2 million. During a conference call on that announcement day, Alarum’s CEO, Shachar Daniel, attributed the less-than-stellar guidance to the previously unidentified drop in customer demand that had begun affecting the company in June.

This revelation prompted immediate negative responses from market analysts. On August 27, Seeking Alpha noted that the guidance indicated a potential drop of over 20% in sequential quarterly revenue, raising red flags about Alarum's financial health. Following this news, Alarum's stock price took a significant hit, falling by $6.77, or 31.34%, to close at $14.83 per American Depositary Receipt (ADR).

Seeking Justice for Investors

Pomerantz LLP is recognized as one of the leading firms specializing in corporate and securities class action lawsuits. Founded by the famed attorney, Abraham L. Pomerantz, the firm has a rich history of fighting for investors' rights and recovering billions in damages for class members in various underhanded corporate misconduct cases.

As this situation unfolds, investors affected by Alarum's business practices are urged to take action and consider joining the class action to seek justice. Those interested can find more information or reach out to the firm through their contact channels.

For inquiries, individuals can contact Danielle Peyton at [email protected] or at 646-581-9980, extension 7980. Interested parties are encouraged to provide their contact information along with the number of shares they purchased to facilitate communication.

The ongoing legal proceedings will determine the resolution of the allegations against Alarum Technologies Ltd., and this case serves as a crucial reminder of the importance of corporate transparency and the responsibilities that executives hold towards their shareholders.