KIND Litigation Report: Levi & Korsinsky, LLP Provides Investors Further Information on Lawsuit Against Nextdoor Holdings, Inc.
NEW YORK, April 03, 2024 (GLOBE NEWSWIRE) -- The following Litigation Report is being issued by Levi & Korsinsky, LLP:
Nextdoor Holdings, Inc. Litigation Report
Case Introduction
Adamo v. Nextdoor Holdings, Inc., et al 4:24-cv-01213-KAW
On February 28, 2024, investors sued Nextdoor Holdings, Inc. f/k/a Khosla Ventures Acquisition Co. II (“Nextdoor” or the “Company”) in United States District Court, Northern District of California.
Plaintiffs in the federal securities class action allege that they acquired Nextdoor stock at artificially inflated prices between July 6, 2021 and November 8, 2022 (the “Class Period”). They are now seeking compensation for financial losses incurred upon public revelation of the Company’s alleged misconduct during that time. To learn whether you may be eligible for a recovery under this class action, go to https://zlk.com/pslra-1/nextdoor-holdings-inc-f-k-a-khosla-ventures-acquisition-co-ii-lawsuit-submission-form?wire=32
Summary of the Allegations
Company Background
Nextdoor (NYSE:KIND) Nextdoor engages in the operation of a “hyperlocal online social networking platform.
According to the Company, its platform connects neighbors, public agencies, and businesses through the internet. Nextdoor supposedly facilitate this online community through different features such as a news feed where “neighbors,” or users, can see posts, and engage in discussions. They can also see pictures posted by other neighbors, along with notifications, comments, and groups. In summary, the platform allows users to share information, goods and services.
By the end of last year, the Company says, its platform was available in 11 countries and had more than 41 million weekly active users. Nextdoor also says its platform was in use in 1 in 3 U.S. households at that time.
The Company has been trading publicly since the completion of a merger between Nextdoor, Inc. (“Nextdoor Private”) and a “blank check company” or “SPAC” called Khosla Ventures Acquisition Co. II (“KV Acquisition Co.”) in 2021.
Summary of Facts
The Company, and is founder and five of its former senior officers (the “Individual Defendants”) are now accused of deceiving investors by lying and withholding important information about Nextdoor’s business practices and financial condition during the Class Period.
In particular, they are accused of omitting truthful information about the Company’s growth, total addressable market, and U.S. market, from SEC filings and related material. By knowingly or recklessly doing so, they allegedly caused Nextdoor stock to trade at artificially inflated prices during the time in question.
The truth came out in a series of events that culminated on November 8, 2022. That’s when the Company filed a quarterly report with the SEC announcing the Company’s financial results for the third quarter ended September 30, 2022. In this context, Nextdoor reported that its revenues during that time “declined sequentially by $1 million to $54 million, representing just 2% year-over-year growth, and that the Company’s quarterly ARPU growth was increasingly negative, contracting by 12% compared to the prior year quarter.”
In an ensuing conference call held the same day the Company’s then-CFO (an Individual Defendant) “reported that Nextdoor was reducing revenue guidance again by an additional $12 million, warning investors that Nextdoor now expected fiscal 2022 revenues of just $210.5 million at the midpoint – far below the up to $256 million figure provided to investors during the Class Period.”
A closer look…
As alleged, the Company and/or Individual Defendants repeatedly made false and misleading public statements throughout the Class Period.
In a Financial Times news article filed on a form with the SEC at the beginning of the Class Period, for example, the Company’s then-CEO (an Individual Defendant) was quoted as stating pertinent part: “We think we’re a company that can maintain hyper growth over multiple years.”
Then, on a form filed with the SEC on July 9, 2021 containing a transcript of an interview Nextdoor’s then-CEO did with Australia Start Up Daily quoted her as stating in pertinent part: “[Y]es so today we’re in 11 countries. [W]hat we see in the U.S. is Nextdoor is truly network business. [T]he more people that join the platform, the richer the content. more engaged members are and so growth bigats [sic] growth.”
Finally, during a November 10, 2021 conference call with analysts and investors, the Company’s then-CEO stated in pertinent part: “Our total addressable market is large and global. In the third quarter, international WAUs represented 18% of total, an increase from 15% in the prior year quarter.”
Actions You May Take
If you have purchased the Company’s stock during the Class Period, you may join the class action as a lead plaintiff, remain a passive class member, or opt out of this litigation and pursue individual claims that may not be available to the class as a whole. To learn more about your options, go to: https://zlk.com/pslra-1/nextdoor-holdings-inc-f-k-a-khosla-ventures-acquisition-co-ii-lawsuit-submission-form?wire=32
NOTE: The deadline to file for lead plaintiff in this class action is April 29, 2024. You must file an application to be appointed lead plaintiff prior to this deadline in order to be considered by the Court.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 17th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171
www.zlk.com
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