|Company name||Zendesk, Inc.|
NEW YORK, January 16, 2020 – Bragar Eagel and Squire is investigating certain officers and directors of Zendesk, Inc. (NYSE: ZEN) following a class action complaint that was filed against Zendesk on October 24, 2019.
The complaint alleges that throughout the class period, defendants made materially false and misleading statements to investors and failed to disclose adverse facts pertaining to the Company’s business, operations, and financial results. Specifically, the Company concealed material information and/or failed to disclose that: (a) Zendesk’s clients had been subject to data breaches dating back to 2016; (b) Zendesk was experiencing slowing demand for its SaaS offerings, particularly in Germany, the United Kingdom, and Australia, due in large part to political uncertainty and China trade issues there; and (c) as a result of the foregoing, Zendesk’s business metrics and financial prospects were not as strong as defendants had led the market to believe during the Class Period. As a result of this information being withheld from the market, the price of Zendesk stock was artificially inflated to more than $93 per share during the Class Period. While Zendesk common stock was trading at these artificially inflated prices, certain of the Company’s officers and/or directors cashed in, selling approximately 409,000 of their personally held Zendesk shares, reaping more than $32.7 million in proceeds.
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