Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Alarum Technologies Ltd (“Alarum” or the “Company”) (NASDAQ: ALAR) and reminds investors of the April 15, 2025 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (i) the Company was less effective in retaining and/or expanding customer engagements than it had represented to investors; (ii) the foregoing would impair Alarum’s ability to generate consistent revenue growth; (iii) accordingly, Alarum’s business and/or financial prospects were overstated; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On August 26, 2024, Alarum announced its results for the second quarter of 2024 and issued Q3 2024 guidance. Specifically, Alarum revealed that it was expecting Q3 2024 revenue of $7 million, far short of the $9.2 million revenue figure projected by analysts.
That same day, Alarum hosted an earnings call with investors and analysts to discuss the Company’s Q2 2024 results (the “Q2 2024 Earnings Call”), during which Alarum’s Chief Executive Officer (“CEO”) Defendant Shachar Daniel (“Daniel”) attributed the disappointing Q3 2024 revenue guidance to the reduced customer spending Alarum began experiencing in June 2024.
Market analysts were quick to comment on the Company’s revelation. For example, on August 27, 2024, Seeking Alpha noted that Alarum’s projected Q3 2024 revenue figure “represent[ed] over a 20% decline sequentially and only 3% growth [year-over-year],” and raised several issues with Alarum’s disclosure including, among other things, the lack of clarity in the Company’s explanation for the drop in customer demand.
On this news, Alarum’s American Depositary Receipt (“ADR”) price fell $6.77 per ADR, or 31.34%, to close at $14.83 per ADR on August 26, 2024.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Alarum’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the Alarum Technologies Ltd class action, go to www.faruqilaw.com/ALAR or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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