On July 31, 2019, Pluralsight announced disappointing financial results for the second quarter, disclosing that its billings growth rate had sharply deteriorated.  The Company blamed its declining growth in billings on sales execution challenges and other issues with its salesforce.  Pluralsight also disclosed that its Chief Revenue Officer was resigning.  In response to these disclosures, Pluralsight's share price declined.  The stock price fell $12.13 per share in a single day – a nearly 40% drop – to close at $18.56 per share on August 1, 2019. 

The complaint, filed on August 13, 2019, alleges that throughout the Class Period, Pluralsight misrepresented the Company's business outlook, particularly related to the company's salesforce and its ability to generate strong growth in billings.  Specifically, the company failed to disclose that Pluralsight was experiencing substantial delays in hiring and properly training the salesforce necessary to meet its billing projections.  In addition, the company knew at the time of the SPO that it was behind schedule onboarding new sales representatives, which was hurting the company's sales execution and preventing Pluralsight from meeting its high growth projections.  Instead of disclosing such facts at the time of the SPO, and to cash-out at inflated prices, defendants intentionally obscured and omitted this pertinent information from investors.

The complaint, filed on August 14, 2019, alleges that throughout the Class Period defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, defendants made false and/or misleading statements and/or failed to disclose: (1) that the company was unable to close large deals within the quarter and that the deals were pushed out to subsequent quarters or downsized; (2) that, as a result, the company's revenue would be materially impacted; (3) that, as a result, the company would lower its fiscal 2020 guidance; and (4) that, as a result of the foregoing, defendants' positive statements about the company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On August 15, 2019, SAExploration revealed that certain accounting matters that arose in 2015-2016 were under investigation by the SEC. The company stated that they would restate its previously issued financial statements for fiscal years 2015 through 2018 and delay filing its 10-Q for the quarter ended June 30, 2019. The company's Chief Executive Officer was placed on administrative leave, and its Chief Financial Officer was terminated from his position.

The complaint, filed August 18, 2019, alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) the company improperly did not classify Alaska Seismic Ventures, LLC ("ASV") as a variable interest entity; (2) the company had a controlling financial interest in ASV, which required the company to consolidate ASV in its financial statements; (3) the company had deficient internal controls over financial reporting; (4) these practices were likely to lead to an investigation of the company by the SEC; (5) SAExploration would be forced to delay the filing of its quarterly report for the quarter ended June 30, 2019; and (6) as a result, defendants' statements about SAExploration's business, operations and prospects were materially false  and misleading and/or lacked a reasonable basis at all relevant times. 

Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation.  For additional information about Bragar Eagel & Squire, P.C. please go to www.bespc.com.  Attorney advertising.  Prior results do not guarantee similar outcomes. 

Contacts
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
[email protected]
www.bespc.com