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INVESTOR NOTICE: Kaskela Law LLC Announces Investigation of Sprout Social, Inc. and Encourages Long-Term Investors to Contact the Firm - SPT

1. Kaskela Law investigating potential fiduciary duty breaches at Sprout Social. 2. Securities fraud complaint filed against SPT for misleading investors. 3. Stock fell 40% after disclosures of poor performance on May 2, 2024. 4. CEO admitted issues were 'self-induced' and not due to external factors. 5. Investors encouraged to contact Kaskela Law regarding their legal options.

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Why Very Bearish?

The significant drop in stock price indicates major loss of investor confidence. Historical examples include companies facing legal challenges, often resulting in severe stock depreciation.

How important is it?

The detailed legal implications and their immediate effect on stock valuation are significant. The drop reflects urgent investor re-evaluation, impacting future performance.

Why Short Term?

Immediate market reaction to legal challenges can lead to increased selling pressure. Such scenarios usually result in short-term stock price volatility.

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Kaskela Law LLC announces that it is investigating potential breach of fiduciary duty claims concerning Sprout Social, Inc. (NASDAQ:SPT) on behalf of the company's long-term investors. Click here to receive additional information about your legal rights and options: https://kaskelalaw.com/case/sprout-social/Recently a securities fraud complaint was filed against Sprout Social on behalf of certain investors who purchased shares of the company's stock between September 22, 2021 and May 2, 2024. According to the complaint, during that time period Sprout Social and several of the company's executive officers falsely assured investors that Sprout Social's "upmarket" transition was on track and entirely successful, repeatedly touting that the company's social media management platform provided all the features and capabilities needed to serve large, complex corporate customers.However, and as further detailed in the complaint, on May 2, 2024, the defendants made a series of stunning disclosures that completely contradicted what they had been telling investors for years. Moreover, defendants "made crystal clear" that Sprout Social's poor performance and outlook were in no way, shape or form the product of external factors. To the contrary, defendants explicitly admitted that the company's debacle was entirely "self-induced," with Sprout Social's newly appointed CEO tellingly acknowledging: "I own this." Following these disclosures, shares of Sprout Social's stock fell $19.33 per share, or 40% in value, to close at $28.82 per share on May 3, 2024, on unusually heavy trading volume.The investigation seeks to determine whether the members of Sprout Social's board of directors violated the securities laws and/or breached their fiduciary duties in connection with the above alleged misconduct. Current Sprout Social shareholders who purchased or acquired their shares prior to January 1, 2023 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 - 0750 for additional information about this investigation and their legal rights and options.Alternatively, investors may submit their information to the firm by clicking on the following link (or if necessary, by copying and pasting the link into your browser):https://kaskelalaw.com/case/sprout-social/Kaskela Law LLC exclusively represents investors in securities fraud, corporate governance, and merger & acquisition litigation on a contingent basis. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.CONTACT:KASKELA LAW LLCD. Seamus Kaskela, Esq. ([email protected]) Adrienne Bell, Esq. ([email protected]) 18 Campus Blvd., Suite 100 Newtown Square, PA 19073 (484) 229 - 0750 (888) 715 - 1740 www.kaskelalaw.comThis notice may constitute attorney advertising in certain jurisdictions.SOURCE: Kaskela Law LLC

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