LOS ANGELES–(BUSINESS WIRE)–The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Nextdoor Holdings, Inc. f/k/a Khosla Ventures Acquisition Co. II (“Nextdoor” or the “Company”) (NYSE: KIND) Class A common stock between July 6, 2021 and November 8, 2022, inclusive (the “Class Period”). Nextdoor investors have until April 29, 2024 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On March 1, 2022, Nextdoor released its fourth quarter and full year 2021 financial results, reporting an 18% decline in revenue growth and a 26% decline in average revenue per weekly active user (“ARPU”) growth. On this news, Nextdoor’s stock price fell $0.85, or 13.6%, to close at $5.39 per share on March 4, 2022, thereby injuring investors.
Then on November 8, 2022, Nextdoor disclosed that revenues during the third quarter of 2022 declined sequentially by $1 million and that the Company’s quarterly ARPU growth contracted by 12% compared to the prior year quarter. On this news, Nextdoor’s stock price fell approximately 11% to close at $2.06 per share on November 9, 2022, thereby injuring investors further.
The complaint filed in this class action 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 failed to disclose to investors: (1) that Nextdoor’s financial results prior to the Merger had been temporarily inflated by the ephemeral effects of the COVID-19 pandemic, which had pulled forward demand for Nextdoor’s platform and cannibalized future advertising revenue growth; (2) that, rather than being sustained, such growth trends had already begun reversing at the start of the Class Period; (3) that Nextdoor’s total addressable market was materially smaller than the 312 million households represented to investors; (4) that, by the start of the Class Period, Nextdoor’s most important market – the U.S. market – was already substantially saturated, impairing the Company’s ability to monetize users and increase its ARPU or U.S. WAUs; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased Nextdoor Class A common stock during the Class Period, you may move the Court no later than April 29, 2024 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Nextdoor Class A common stock, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to [email protected], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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Contacts
The Law Offices of Frank R. Cruz, Los Angeles
Frank R. Cruz, 310-914-5007
[email protected]
www.frankcruzlaw.com
