Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Sprinklr, Inc., a customer experience management (CXM) company. The firm encourages investors who suffered losses exceeding $100,000 in Sprinklr between March 29, 2023, and June 5, 2024, to contact them directly to discuss their options. A federal securities class action lawsuit has been filed against Sprinklr, and investors have until October 15, 2024, to seek the role of lead plaintiff.
The lawsuit alleges that Sprinklr and its executives made false and misleading statements about the company’s performance and prospects. Specifically, the complaint focuses on Sprinklr’s challenges in scaling its Contact Center as a Service (CCaaS) market and the subsequent slowdown in growth for its core products. The company’s revised growth estimates for the fourth quarter of 2024 and full year 2025, coupled with changes in its leadership, have raised concerns among investors and analysts.
In December 2023, Sprinklr announced strong third-quarter results but then revised its growth expectations downwards for the remainder of the year, citing subscription renewal pressures and macro-economic headwinds. The company attributed these challenges to its increased focus on the CCaaS market. However, in September 2023, CEO Ragy Thomas stated that investments in AI and CCaaS were key drivers of customer growth.
Following these announcements, Sprinklr’s stock price dropped significantly. In June 2024, the company further reduced its growth projections for fiscal year 2025, attributing the decline to decreased customer retention in its core business. This news led to another sharp decline in Sprinklr’s stock price.
Faruqi & Faruqi is seeking to represent investors who have suffered financial losses due to alleged misrepresentations by Sprinklr. The firm encourages anyone with information about the company’s conduct, including whistleblowers, former employees, and shareholders, to contact them.
Investors who wish to learn more about the Sprinklr class action lawsuit can visit www.faruqilaw.com/CXM or contact Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
