Perion Network Ltd. (PERI) Faces Investor Class Action for Allegedly Concealing Decline in Search Advertising Business – Hagens Berman
SAN FRANCISCO, May 03, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Perion Network Ltd. (NASDAQ: PERI) investors who suffered substantial losses to submit your losses now.
Class Period: Feb. 9, 2021 – Apr. 5, 2024
Lead Plaintiff Deadline: June 17, 2024
Visit: www.hbsslaw.com/investor-fraud/peri
Contact An Attorney Now: PERI@hbsslaw.com
844-916-0895
Perion Network Ltd. (PERI) Securities Fraud Class Action:
Digital advertiser Perion Network and most senior executives were recently hit with an investor class action, following the company’s announcement of disastrous preliminary Q1 2024 results and updated full year 2024 guidance.
The suit, which is brought on behalf of damaged investors who purchased, or otherwise acquired, Perion common stock during the period from Feb. 9, 2021 through Apr. 5, 2024, inclusive (the “Class Period”), alleges claims of securities fraud stemming from Defendants’ alleged misstatements and omissions.
Specifically, the complaint alleges that Defendants misrepresented and concealed that:
(1) Perion’s search advertising business was not a reliable and significant growth driver and was in fact in decline;
(2) Perion’s long-term relationship with Microsoft and search services agreement would not provide stability for Perion’s search advertising business;
(3) there was an increased risk of Microsoft acting to unilaterally change its advertising pricing and mechanisms to the detriment of Perion while the search services agreement was in place;
(4) Perion’s AI technology and Microsoft’s investment in ChatGPT would not protect or grow Perion’s search advertising revenue; and
(5) based on the foregoing, Defendants lacked a reasonable basis for their positive statements about Perion’s search advertising business and related financial results, growth, and prospects.
The truth about Perion’s search advertising business emerged on Apr. 8, 2024, when Perion announced disappointing preliminary Q1 2024 results and slashed its FY guidance.
The company revealed that “[i]n the first quarter of 2024, Perion experienced a decline in search advertising activity, attributable to changes in advertising pricing and mechanisms implemented by Microsoft Bing in its Search Distribution marketplace.”
Perion also revealed that, “[t]hese adjustments led to a reduction in Revenue Per Thousand Impressions (RPM) for both Perion and other Microsoft Bing distribution partners” and “contributed to decreased search volume.”
The Company also disclosed that for the full 2024 year, it now expects revenue in the range of $590 million to $610 million, down from the prior guidance range of $860 to $880 million the Company gave on Febr. 7, 2024
On this news, the price of Perion common stock declined by $8.61 per share, or appx. 40%, in a single trading day.
“We are investigating whether Perion knowingly concealed adverse changes in its search advertising business,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Perion and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Perion case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding Perion should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email PERI@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
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Contact:
Reed Kathrein, 844-916-0895
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